The Gunners had made Saka's renewal a top priority. Previously tied to a contract running until 2027, the academy graduate has been patiently awaiting improved terms.
Arsenal accelerated negotiations in recent weeks amid growing interest from other top European clubs, keen to secure the 24-year-old's signature.
Saka, who joined Arsenal's academy at the age of seven and made his first-team debut in 2018, has grown into one of the club's most influential figures.
This extension represents another milestone in Arsenal's long-term project, following the recent contract renewals of Gabriel Magalhaes, William Saliba, Ethan Nwaneri and Myles Lewis-Skelly.
Despite struggling with injuries this season, Saka has contributed seven goals in 27 appearances. Across all competitions, he has made 290 appearances for Arsenal, scoring 77 goals and providing 66 assists—a remarkable return for a player still in his early twenties.