Mikel Arteta agrees new Arsenal deal to keep him until 2027

Aresenal coach Mikel Arteta. [AFP]

Arsenal manager Mikel Arteta has signed a new long-term contract at the Emirates Stadium, the Premier League title chasers announced on Thursday.

The Gunners said in a statement that the 42-year-old Spaniard, who has reportedly agreed a three-year deal, "has been a key figure in re-establishing us as a force back at the top of English and European football".

Arteta, who became Arsenal boss in late 2019, said he felt "extremely proud".

"I feel extremely lucky to work every single day with good people and the ambition we have here," he said.

"I feel very inspired, I feel challenged, I feel supported and I want to do much more than what we've already done together."

Arsenal co-chairman Josh Kroenke said he was delighted with the new deal.

"Mikel is a dynamic and passionate manager, who is relentless in the pursuit of excellence," he said.

"He has a deep understanding of Arsenal's values, and since joining us as head coach, he has taken the team to another level in an Arsenal way."

Arteta, who had been working as an assistant coach under Pep Guardiola at Manchester City, replaced compatriot Unai Emery as Arsenal boss in December 2019.

He won the FA Cup in his first season in charge -- his first silverware as a manager.

Arsenal have finished as runners-up to City in the Premier League for the past two seasons, going agonisingly close to lifting the trophy for the first time since 2004.

Arteta's men, who face north London rivals Tottenham on Sunday, are currently fourth in the table after two wins and a draw.

They begin their Champions League campaign next week against Atalanta.

Arteta, who played 150 times for Arsenal and captained the side, called for calm last month regarding his contract situation, insisting his focus had been on the transfer window.

"We are on it and we will take care of that in the right moment," said Arteta, who had previously been linked with Paris Saint-Germain and Barcelona.

"I don't think anybody has to panic. I am in the place where I want to be and am really happy.

"Hopefully the club thinks the same thing and the players I work with, who in my opinion are the most important ones."

Arsenal strengthened in the summer transfer window, bringing in a clutch of players including Raheem Sterling, Mikel Merino and Riccardo Calafiori.

But there are still questions over whether they have enough firepower to overhaul champions City.