The Dutchman joined the English club from Bayern Munich in 2017 and has since scored 117 goals in 144 appearances.
“The most beautiful thing about this sport is building something with a team and with people around you that you really want to be close to.
And I got that here at Arsenal ", says Miedema, who was on an expiring contract.
Arsenal's Swedish coach Jonas Eidevall is enjoying the attacking star's new contract.
"'Viv' is an outstanding talent and an incredibly important player for the team, so it's fantastic news that she stays with us."
Arsenal finished second in the Women's Super League this season, one point behind Chelsea.