Walcott said: “I am very happy to have signed a new contract here at Arsenal.
“Thanks to everyone for their continued support, especially the manager, everyone at the club and most importantly the fans.
“I have made it clear from the start that I wanted to stay at Arsenal so I am pleased we have agreed a deal that everyone is happy with.
“What’s important now is for the team to realise its potential and win trophies.”
Walcott’s decision is a welcome relief for Gunners fans who have seen many of their star players leave in recent seasons.
Robin van Persie went to Manchester United last summer while Samir Nasri, Cesc Fabregas and Gael Clichy moved on a year earlier.
However, after months of negotiations, Walcott has committed his future to the North London club.
Gunners boss Arsene Wenger said: “We are all delighted that Theo has signed a new contract.
“He joined us as a 16-year-old and since then has developed very well to become an extremely important player for both Arsenal and England.
“Theo is a strong player and also a great person and the combination of his ability and pace always make him such a valuable asset either from the flanks or down the middle.
“Theo’s contract extension now gives us a strong nucleus of ambitious young players who have committed to the club and want to be successful with us as a group.”
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