Arsenal manager Mikel Arteta has agreed a new long-term contract at the Emirates, the Premier League club announced on Thursday.

The Gunners said in a statement the 42-year-old Spaniard "has been a key figure in re-establishing us as a force back at the top of English and European football".

Arteta, who had been working as a coach under Pep Guardiola at Manchester City, replaced compatriot Unai Emery as Arsenal boss in December 2019.

He won the FA Cup in his first season in charge -- his first silverware as a manager.

Arsenal have finished as runners-up to City in the Premier League for the past two seasons, going agonisingly close to lifting the trophy for the first time since 2004.

Arteta's men are currently fourth in the table after two wins and a draw and begin their Champions League campaign next week against Atalanta.

The BBC said the Spaniard's new deal is expected to be confirmed before Sunday's north London derby at Tottenham.

Arteta, who played 150 times for Arsenal and captained the side, called for calm last month regarding his contract situation, insisting his focus had been on the transfer window.

"We are on it and we will take care of that in the right moment," said Arteta, who had previously been linked with Paris Saint-Germain and Barcelona.

"I don't think anybody has to panic. I am in the place where I want to be and am really happy.

"Hopefully the club thinks the same thing and the players I work with, who in my opinion are the most important ones."

Arsenal strengthened in the summer transfer window, bringing in a clutch of players including Raheem Sterling, Mikel Merino and Riccardo Calafiori, but there are still questions over whether they have enough firepower.