Arteta, 40, was hired in December 2019 to replace Unai Emery, and his contract was due to expire at the end of this season.
"We want to take the club to the next level and to compete really with the top teams," the Spaniard said in a statement on Friday, May 5.
"In order to do that, we have to be playing in the Champions League.
"We have to be able to evolve the team, improve our players, improve all departments, generate even more connection with our fans, improve the atmosphere at the Emirates (Stadium), be able to recruit top, top talent and the best people for this club to drive this project to that level."
"We want to take the club to the next level and to compete really with the top teams," the Spaniard said in a statement on Friday, May 5.
"In order to do that, we have to be playing in the Champions League.
"We have to be able to evolve the team, improve our players, improve all departments, generate even more connection with our fans, improve the atmosphere at the Emirates (Stadium), be able to recruit top, top talent and the best people for this club to drive this project to that level."