The Dutch striker has enjoyed a stellar five years of goalscoring with the North London club since arriving in 2017 - bagging 117 goals in 144 appearances across all tournaments.
The 2021-22 season saw Miedema rack up 23 goals in 39 matches, including 14 goals and eight assists from 20 games in the Women's Super League season - finishing second in the Golden Boot race behind Chelsea's Samantha Kerr.
However, Arsenal Women ended the 2021-22 season without a trophy to their name after finishing as runners-up to Emma Hayes's side in the WSL, and speculation over Miedema's future began to grow.
The 25-year-old was briefly linked with a switch to Lyon or Barcelona, but she has now committed her future to Arsenal and believes that winning silverware in North London will "mean a lot more" than collecting trophies elsewhere.
"I think the most beautiful thing about the game is building something with a team and with people around you that you really want to be around," Miedema - donning the 2022-23 home kit - told arsenal.com after putting pen to paper on a new contract.
"I do feel like I have got that at Arsenal. I feel like for me, winning titles with Arsenal will mean a lot more to me than winning them with another club at the moment. And that's what I obviously hope to achieve with Arsenal."
Head coach Jonas Eidevall - who only signed a new deal himself last month - added: "Viv is a stellar talent and a hugely important player for this team, so it's fantastic news that she is staying with us.
"As a club, our ambition is to win titles and compete at the highest level - we know Viv's own ambitions are the same, and together we will give everything to achieve that."
Head of Women's Football Clare Wheatley also expressed her pride at tying down one of the "best players on the planet", adding: "This is an important day for Arsenal Football Club.
"Viv is among the best players on the planet and has shown her quality year after year in the Arsenal jersey. We have ambitious targets here and Viv will play a key role in us reaching them moving forward."
Miedema was named the BBC Women's Footballer of the Year in 2021 and has also been included in the FIFA FIFPRO Women's World 11 in the last two years.
The Dutch striker has won one League Cup and one WSL title during her time at Arsenal so far and holds the record for goals in the women's top division with 74 - 13 clear of second-placed Ellen White.