Ramsdale had two years remaining on his previous deal but ESPN reported last week that Arsenal were keen to reward him for a prominent role in their unexpected Premier League title push with a significant improvement on his £60,000-a-week ($75,735) agreement.
"We're all so happy that Aaron has signed a new contract," Arsenal manager Mikel Arteta said as part of the announcement. "The way Aaron has developed over the past two years has been exceptional, with his performances, contribution and overall adaptation to the club.
"It's great that we're continuing to build our future with our biggest talents in our young squad. We're all looking forward to enjoying many more years of Aaron the player and the person at the football club."
Aaron's got something to say... pic.twitter.com/ZdQFnlTcHV— Arsenal (@Arsenal) May 18, 2023
Ramsdale moved to the Emirates Stadium from Sheffield United in the summer of 2021 for an initial £24 million ($30.29m). While he faced an initial backlash from some supporters, he quickly usurped Bernd Leno as first-choice.
"It's a huge amount of pride, it's something you work for," Ramsdale said about his new deal. "It doesn't matter if you've been at the club for a month or for four years, you always want to get the next one and push on with the team.
"To get it after two years, I'm buzzing. It just means I can concentrate and keep my head down, and hopefully after a few more years I'll get another one and carry on living the dream at the football club."