Arsene Wenger has finally signed a new contract at Arsenal, with his willingness to commit to a three-year deal emphasising the Frenchman's belief that he can mount Champions League and Premier League title challenges.

Such faith in himself and the ability of his squad was reaffirmed when Arsenal defeated Hull City in the FA Cup final two weeks ago and the 64-year-old resolved to remain in North London.

“I want to stay and to continue to develop the team and the club,” said Wenger said. “We are entering a very exciting period. We have a strong squad, financial stability and huge support around the world. We are all determined to bring more success to this club.”

With Wenger in the final year of his current contract and Arsenal seeking their first trophy since 2005, the FA Cup final was regarded as something of a watershed. Had Hull won, a tenure which began when Wenger succeeded Bruce Rioch at the old Highbury in 1996 could well have ended in an undeserved anticlimax.

Instead the end of that nine-year silverware drought has eased the pressure at the Emirates, delighting those who believe any successor would struggle to live up to Wenger’s record of eight major trophies – including three league titles – and 17 seasons of successive Champions League qualification.

“The club has always shown faith in me and I’m very grateful for that,” said Wenger. “We have gone through fantastic periods and also periods where we have had to stick together.”

Visionary manager He added: “Every time when that togetherness was tested I got the right response. I think I have shown some loyalty as well towards this club and hopefully we can make some more history. I am sure we can.”

During his 18 years in charge the man who arrived as a virtual unknown from the Japanese side Grampus Eight has helped drag English football blinking into the modern era, revolutionising the domestic game’s thinking on an array of subjects from tactics to sports science to the mass importation of foreign players.

Former Arsenal goalkeeper and 1971 FA Cup and league double-winner Bob Wilson is delighted that Wenger is to remain at the club.

“This is a guy who works 24 hours a day all year around,” Wilson told BBC Radio 5 Live. “He hates to lose and revolutionised the game in this country. Some say he has too much power but a guy who dedicates himself to it like he does, you cherish.”

Wenger’s achievements are amplified by the manner in which he has been able to produce teams playing some of England’s most attractive football on budgets dwarfed by those of their rivals.

Unlike many of his peers the costs of underwriting a move to a new ground have not exerted a disastrous impact on the performances of his sides.

“Almost every club who has built a new ground in this country has been relegated,” said Wilson. “Why? Because of the stranglehold of the debt of a new ground. Arsenal and Arsene have got through that stage by still qualifying for the Champions League every year.”

Now, with Wenger expected to invest in his squad this summer, his three-year contract sends potential new signings the important, appealing, message that Arsenal remain one of England’s most stable clubs.

Vote of confidence Arsenal chairman Sir Chips Keswick said: "We are delighted that Arsene has renewed his contract for a further three years. He is a man of principle, who lives and breathes Arsenal. He has established Arsenal for its exciting playing style around the world, continues his commitment to young players and has the ability to bring top-class players to the club. I have no doubt we have an exciting future ahead of us with him leading the team."

The club's majority shareholder, Stan Kroenke, said: "Sustained excellence is the hardest thing to achieve in sport and the fact Arsenal has competed at the top of the game in England and Europe throughout the time Arsene has been manager is the ultimate testimony to his consistency of performance, talent and ambition. We are delighted with the FA Cup success which has added to his already outstanding record. Under his guidance we look forward to adding more trophies."