While the terms of the new contract for van Persie, who joined Arsenal from his home town club Feyenoord in 2004, have not been disclosed, it is reported to be worth around £80,000-a-week, which would make the Holland forward one of the highest paid players at Emirates Stadium.
Van Persie said: "I have been at the club for five years now and there really is a great feeling here at Arsenal.
"We have a top-class manager, a squad full of superb young players, a world-class stadium and brilliant supporters.
"Arsenal have a very bright future and I want to be part of it."
Van Persie had been linked with a move to Barclays Premier League rivals Manchester United, but hinted he could now end his career at Emirates Stadium.
"My heart is with Arsenal and I just can't picture myself in a different shirt. I just can't see it now because I love this club so much.
"If you look at the last five years, look at the steps I have made every season, if you look at the support the boss and the whole club gave me, the fans gave me, my team-mates gave me - this is the right decision."