The 2021-22 campaign was huge for the Whitby-born star who racked up 14 goals and 19 assists in just 40 appearances for the Gunners.
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She then won player of the tournament and took home the golden boot as the Lionesses went all the way at Euro 2022, scoring six goals to help them to glory.
With 61 goals in 166 appearances since joining Arsenal from Sunderland in 2017, the 27-year-old says that she's delighted to commit her future to the club.
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Speaking of the new deal, Mead said: "I'm so happy to have signed a new deal with Arsenal.
"This club is home for me - I've grown so much here as a player and a person and I know we can achieve so much more together in the years to come.
"I want to compete to win the biggest trophies in the game and I know that the ambitions at Arsenal match my own, so I can't wait to get back onto the pitch and help to deliver the success our supporters deserve."
Arsenal head coach Jonas Eidevall added: "It's wonderful news that we have agreed a new deal with Beth.
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"She is a world-class footballer and has proven that on the biggest stage of them all.
"I have so much admiration for the way she has handled success and adversity on and off the pitch over the past few years, and I'm sure she will approach the next few months with the positive attitude we all know Beth for."