Wenger, who has been with the club since 1996, met on Monday with director Stan Kroenke and agreed to extend his contract for two years, reports Efe.
"Our ambition is to win the Premier League and other major trophies in Europe. It's what the fans, players, staff, manager and board expect and we won't rest until that is achieved," Kroenke said.
"Arsene is the best person to help us make that happen. He has a fantastic track record and has our full backing," he added.
Arsenal, which won their 13th FA Cup trophy on Saturday, was fifth in the Premier League this season.
The 67-year-old Frenchman has guided the Gunners to three Premier League titles, seven FA Cups and six community shield matches.
We can confirm that the club has agreed a new contract with Arsène Wenger https://t.co/YZcmNufFrS— Arsenal FC (@Arsenal) May 31, 2017