Arteta was appointed as club captain in the summer, and this is the principle reason why Arsene Wenger must commit to him.
The former Everton man has come in for a little criticism of late after his performance away to Dortmund, and it's not been entirely his fault.
Arsenal's whole team were bad that night, but Arteta's performance showed that he is not the defensive midfielder fans crave in big games.
He is however a player Arsene Wenger believes in, and that makes him crucial to this season.
Arteta's previous deal was set to expire in June, with the midfielder linked to both Athletic Bilbao and Fiorentina over the summer.
If Arsenal are to be successful this season, the club simply can't afford to let Arteta carry on through the season with questions hanging over his own future.
For a club captain, it would be de-stablising for the player himself, and for his fellow players.
And then there is Arsene Wenger's judgement, how can he appoint a player captain one year, and let him walk away for free the following summer?
The Gunners can still go onto sign a top defensive midfielder in January or next summer, and Arteta can fit around that and fit around that, eventually fulfilling a role similar to that which Tomas Rosicky has played in recent seasons.