The 22-year-old enjoyed a great end to the 2021/22 season scoring five goals in the Gunners last eight Premier League games, all of which he started.
Nketiah has been at the club since the age of 14 following his release from fellow London side Chelsea, and has gone on to make 92 first-team appearances, scoring 23 goals.
During the 2019/20 season, Nketiah joined then Championship side Leeds United on loan, scoring five goals in his time at the club.
In an interview with the clubs media team, Arsenal boss Mikel Arteta said: "I'm delighted Eddie is staying with us. He represents what we are all about and all the values of the club.
"We are very happy that he has extended his contract and now have to get to work and continue to develop the great talent and great person that we have in him."
New contract, new number
Nketiah, who previously wore the number 30 shirt, has also been handed the iconic number 14 shirt on top of his new contract.
The young English striker has big shoes to fill with his new squad number, which previously belonged to club legend and all time top goal scorer Thierry Henry.
The number 14 shirt has been left vacant since Aubameyang's departure to Barcelona in January of 2022.