Despite speculation regarding the Frenchman's future, the defender has stated that he is happy at the Emirates Stadium and looking forward to playing consistently after injury
The Frenchman's current deal expires in 2014, and the club were reported to have only offered him a 12-month extension.
However, Sagna has been denied the speculation, and says he wants to repay the faith the club have shown in him after twice breaking his leg in the past 18 months.
"I'm very happy," Sagna told reporters.
"I'm very happy to be back to football and to play for Arsenal. I'm looking forward to playing more games this season because I've been injured lately."
Sagna returned from his second broken leg in October, and has made seven appearances so far for the Gunners this season in all competitions.