As part of the new package, Emirates will continue with naming rights on the Gunners' 60,000-seater stadium at Ashburton Grove until 2028.
The £30m-a-year contract represents a significant increase in additional revenue for the Premier League club.
Arsenal chief executive Ivan Gazidis believes the move shows the Gunners' intent to "keep at the top of the game in England and Europe".
He said in a statement ahead of Friday morning's press conference at Emirates Stadium: "This agreement is a testimony to Arsenal's approach and to the capabilities we have developed in recent years as well as the strength of our partnership with Emirates.
"The original deal with Emirates was a key facilitator of our move from Highbury and this next phase of our relationship will be just as critical to keep us at the top of the game in England and Europe.
"The fact this partnership will continue for many years to come underlines how much both organisations value and benefit from the relationship."
Chairman and chief executive of Emirates Airline and Group, His Highness Sheikh Ahmed bin Saeed Al Maktoum, added: "Arsenal's strong appeal around the globe and ambitious approach to the game parallel our own approach to business, making them a valuable partner for our brand."
Gazidis maintains the club's extension of their sponsorship deal with Emirates airline is "all about football", and says the funds will be ploughed back into Arsene Wenger's squad.
He said: "The deal is all about football. It is all about giving us the resources in what we believe is a responsible and well managed way, to be able to invest in what we put onto the pitch for our fans."
"We have been able to talk to Emirates about the payment terms and bring some of them forwards, so that we will have additional money in this financial year which will be able to invest in the summer.
"Those decisions on investment are made by our manager, and he has done an outstanding job of managing the resources of the club over time, and we expect that to continue, but he will have more resources available."