Arsene Wenger signed a new two-year deal with Arsenal that will keep him at the Emirates Stadium until 2019, the English Premier League club announced on Wednesday.
The 67-year-old Frenchman's contract was due to end at the conclusion of the current season and his future had been the source of speculation for months.
Arsenal came a disappointing fifth in the Premier League this season, the first time they have finished outside the top four since Wenger took over at the club in 1996.
However, Wenger was given a boost by Saturday's 2-1 win over champions Chelsea in the FA Cup final and was given the backing of the club's board at a meeting on Tuesday.
"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," said majority owner Stan Kroenke in a statement.
"Arsene is the best person to help us make that happen. He has a fantastic track record and has our full backing.