By Toby Prince
Iwobi is currently on international duty with Nigeria ahead of friendly matches with the Democratic Republic of Congo and Cameroon.
He signed the new deal after becoming a regular feature in the Arsenal development squad.
A statement on the Gunners’ website reads: “Everyone at Arsenal would like to congratulate Alex on his new contract and we look forward to his continued progression in the season ahead.”
It is thought that Iwobi remains keen to go out on loan in the search of regular first team football, as his father, Chuka Iwobi, told Goal.com.
“Alex’s preferred option at this stage is to go on loan to gain first team experience and come back to Arsenal later on to fight for a place,” the 19-year-old’s father said.
“Hopefully a loan move will be sorted out by the time Alex comes back from international duties.”
Meanwhile, Iwobi, who is nephew to former Nigeria international, Austin Jay-Jay Okocha, is delighted to have extended his contract with the Gunners.
The young lad feels his new deal is testimony to the hard work he has put in down the years at the club.
“I’m delighted to have signed a new contract, especially with a club like Arsenal who are so big,” he told Arsenal.com. “I’m happy to sign for them.
“I like to think I have earned it. I have gone through a lot with Arsenal so to have a new and improved contract is very good and I’m happy to have earned it.”