The former Barcelona youth product had been linked with a move to his former club and also to Manchester City, but Bellerin will have now put an end to these rumours with this latest deal.
According to the 'Daily Mail', Bellerin has put pen to paper, signing until 2023 on a reported £5m per year deal.
Since making his debut in 2014, Bellerin has played 87 times for the Gunners and is now the club's first choice right-back.
The 21-year-old had started every single Premier League game for Arsenal this season until the weekend, after being ruled out for a month with injury.
Arsenal are yet to confirm the news, but are expected to announce the defender's contract extension before their Champions League tie with PSG.