Theo Walcott has signed a new three-and-a-half-year contract with Arsenal, worth £100,000 a week, reports BBC Sport.
The 23-year-old England international, who is in the final six months of his current deal, rejected a five-year offer worth £75,000 a week in August.
Walcott - who has recently been used as a striker - has scored 14 goals in 24 games this season.
Arsenal lawyers and the player's advisors spent all of Thursday in negotiations before agreeing on most issues by 19:00 GMT.
Walcott's deal includes a signing-on bonus in the region of £3m.