Ozil’s previous deal had been due to expire at the end of the season, with the likes of Manchester United, Barcelona and Juventus credited with an interest in the Germany international.
The 29-year-old has been able to speak to foreign clubs over a possible free summer transfer since January 1, but he has now decided to commit his future to Arsenal in a deal which will see him become the best-paid player in the club’s history.
Ozil, who put pen to paper on the new deal this morning, will reportedly earn around £350,000 a week as part of a contract which keeps him at the Emirates Stadium until the summer of 2021.
The news adds to a successful deadline day for Arsenal, who completed the club-record signing of Pierre-Emerick Aubameyang from Borussia Dortmund earlier in the day.
The Gunners lost Alexis Sanchez to Manchester United in a swap deal for Henrikh Mkhitaryan earlier in the transfer window, but Ozil’s new contract could see him extend his stay at the club to eight years, having joined from Real Madrid in 2013.
The World Cup winner has scored 36 goals in 182 appearances for Arsenal so far, helping the club to three FA Cup crowns in the process.