The 20-year-old, who played in Wednesday's Champions League defeat against Olympiacos, has featured in 37 first-team games for Arsene Wenger's team, finding the net seven times since he made his debut in last term's win at FC Twente.
He moved to the Emirates Stadium in January 2007 before being loaned out to Osasuna for 18 months, playing 33 games for the La Liga outfit.
Wenger said of the news: "We're delighted that Carlos Vela has signed a new long-term contract with the club. Carlos is a fantastic talent and we have already seen glimpses of this during his performances.
"Let's remember, he is still only 20 years old, so there is still a huge amount to come from this boy.
"We have invested a lot of time in Carlos, as we put him in Spain for two years to get some good experience.
"Now he's back with us, we're working hard with him every day and he is a very exciting player. We're looking forward to seeing Carlos score many goals in an Arsenal shirt for a long time to come."
Eduardo, Sanchez Watt, Alex Song, Nicklas Bendtner, Denilson, Robin van Persie, Theo Walcott, Lukasz Fabianski, Aaron Ramsey and Jack Wilshere, have all recently signed new long-term extensions with the Gunners.
Source: DSG
