Iwobi has been at the Arsenal academy since he was nine years old and already has 98 first-team appearances at the age of 22.
The 27-year-old has just under a year remaining on his current contract with the Gunners and would be able to leave the club on a free transfer next summer if he fails to sign a new deal.
"It's always been my childhood dream to represent Arsenal, from young", Iwobi told Arsenal media during his signing presentation.
Iwobi is the latest of Arsenal's younger players to commit their long-term futures to the club, following the likes of Hector Bellerin, Calum Chambers, Rob Holding and teenage midfielder Emile Smith Rowe.
"At this moment I am fit and I can train at 100 per cent every day and I can perform, so that's obviously a huge factor".
"There's always going to be pressure in football and it's always incredible for young kids, especially at Hale End [where his shirt adorns the wall], to look up to me".
There's always going to be pressure in football and it's always fantastic for young "kids, especially at Hale End to look up to me, so I'll try and continue to make them proud".
But new managerUnai Emery considers the Nigeria worldwide an important player in his plans.
The Spanish coach even ordered Iwobi to cut short his holiday by one week so he could travel with the team to their pre-season tour of Singapore.
Midfielder Iwobi scored three goals in 26 league games under the now-departed Arsene Wenger last season.
These are exciting times for Wolves as they gear up for their first season back in the Premier League since 2012 and they are still looking to strengthen their squad if newspaper reports on Sunday are to be believed. The situation was only resolved at the end of January when Sanchez moved to Manchester United and Ozil signed a new deal paying him £350,000 a week.
US detects new activity at N.Korea factory that built ICBMs
Many Americans who went missing were prisoners of war who died before the war ended or were left behind during enemy advancements. Still, the initial field forensic review indicated the "remains are what North Korea said they were", Byrd said.
Turkish lira skids past 5 to dollar on US sanctions move
It added that the US' "aggressive attitude serves no objective ", and vowed that it would respond in equal measure. On the sanctions, he said: "I hope they'll see this for what it is, a demonstration that we're very serious".