The midfielder appeared ready to quit the Gunners after becoming disillusioned over his first team chances.
But the 'Young Guns' website reports he agreed new terms after Arsenal promised a fair chance in pre-season to earn a first-team place.
Agent Salvador de Mirande said: "The probability Oguzhan would stay at Arsenal a few weeks back was very small. We were very disappointed, but a lot happened in the meantime. "
"He wants to seize that opportunity. Oguzhan still want to succeed at Arsenal.