The Premier League outfit have announced on their official website that Holding has put pen to paper on a new long-term contract.
The 25-year-old central defender has been on the books of 2016 and will now stay at the Emirates Stadium until 2024 with an option for a further year.
The former England Under-21 international has not always been a regular in the first team, but this season, he has established himself as an important player for the Gunners.
Holding has made 13 starts and one substitute appearance in the Premier League and one substitute appearance in the Europa League, and has played twice in the EFL Cup for the North London club so far this season.
Arteta has been pleased with Holding and has hailed the defender after the signing of a new contract.
The Spaniard said: “Since I started as manager, I have been hugely impressed with Rob’s contribution to the club and the dressing room, on and off the pitch. The quality of his work every day on the training pitches is excellent and he is translating this into consistently high performances in matches.
“We all know Rob’s quality, which he has shown in his displays during the intense moments of those two FA Cup final victories. We are all very happy that Rob has signed a new contract, he is very popular with all the players and staff, and we’re looking forward to watching him continue to grow with us in the coming years.”
Arsenal Technical Director Edu said: “We are very happy to have signed Rob on a new contract extension. He is 25 years old, so is still coming into the peak of his career, and we are delighted that he’ll be with us during these important years.
“Rob has shown great quality and maturity on and off the pitch in recent months and is developing well. We are looking forward to Rob continuing his progression in the years to come.”