The new five-year contract will keep the 28-year-old with the Toffees until the summer of 2015.
“What this summer has made me realise is how important I am to the club and how important the club is to me,” Arteta told Everton’s official website.
“The chairman and the manager wanted me to stay 120 per cent and that makes me feel proud. We are all seeing the club and the future in the same way and that is special – something that you don’t always find.
“I believe in this squad. We have got a very strong squad now and it is getting difficult to pick an 11 because of the players we have. Something is happening here and I want to be a part of it.”
“Its great news that Mikel Arteta has pledged his future to Everton,” said Everton boss David Moyes.
“He is a very important player for us and we are delighted to secure him.
“The chairman deserves a lot of credit for making this deal happen. He is continually trying to move the club forward.”