Arsene Wenger has signed a new three-year contract with Arsenal which keeps him at the club until 2017.
The new deal will take his tenure at the club to 21 years.
Wenger told Arsenal's official website: "I want to stay and to continue to develop the team and the club. We are entering a very exciting period. We have a strong squad, financial stability and huge support around the world. We are all determined to bring more success to this club.
"The club has always shown faith in me and I'm very grateful for that. We have gone through fantastic periods and also periods where we have had to stick together.
"We are entering a very exciting period. We have a strong squad, financial stability and huge support around the world. We are all determined to bring more success to this club."
Arsenal chairman, Sir Chips Keswick, said: "We are delighted that Arsène has renewed his contract for a further three years. He is a man of principle, who lives and breathes Arsenal. He has established Arsenal for its exciting playing style around the world, continues his commitment to young players and has the ability to bring top-class players to the club.
"I have no doubt we have an exciting future ahead of us with him leading the team."
Arsenal's majority shareholder, Stan Kroenke, added: "Sustained excellence is the hardest thing to achieve in sport and the fact Arsenal has competed at the top of the game in England and Europe throughout the time Arsène has been manager, is the ultimate testimony to his consistency of performance, talent and ambition.
"We are delighted with the FA Cup success which has added to his already outstanding record. Under his guidance we look forward to adding more trophies in future seasons."
There had been speculation that Wenger, who has led the Gunners into the Champion League for 17 straight seasons, could leave, with reported links with his former club Monaco.
Wenger joined Arsenal in 1996 and transformed the club on and off the pitch. They won the double in 1998 and he signed a host of international stars such as Thierry Henry, Dennis Berkamp, Marc Overmars and Cesc Fabregas.
The 2003-2004 team will go do in history as 'The Invincibles', remaining undefeated for the whole title-winning Premier League season.
They won the FA Cup in 2005 but then the silverware dried up, Arsenal losing in two League Cup finals and the Champions League final in 2006.
With pressure growing, Wenger - famously reluctant to splash out big money - signed Mesut Ozil for a club-record £42m.
Despite further frustration in the league, Wenger finally ended the barren run with FA Cup glory at the end of last season and immediately after the 3-2 victory, he indicated that he intended to stay.
Nigel Winterburn, who played under Wenger between 1987-2000, told Sky Sports News: "It's good news for me and the club. I've always supported Arsene Wenger, particularly through the last few seasons when he was under pressure with the team not winning a trophy.
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