The 29-year-old World Cup victor has penned a three-year deal to stay with the Gunners until summer 2021.
Arsenal fans are delighted to see their star staying put, and haven't missed the opportunity to wind up their rivals.
British media reported that the new deal is worth up to 350,000 pounds ($500,000) a week, making the World Cup victor the highest-paid player at the club.
In a statement posted on his social media channels, Ozil wrote: "I am proud to announce: I signed that thing ... three more years with Arsenal!". Good things take time. "Once a Gunner, always a Gunner".
Tuesday's 3-1 defeat to struggling Swansea City only highlighted Arsenal's problems at the back further - mistakes from Nacho Monreal and Petr Cech gifting the Swans victory.
The deal adds to the January acquisitions of Henrikh Mkhitaryan, who joined from United in exchange for Sanchez, and Pierre-Emerick Aubameyang.
Aubameyang finalised a £56m switch from the Bundesliga club on Wednesday, and the ambition shown by Arsenal to bring in a world class striker has convinced Ozil to stay.
The Independent's Miguel Delaney revealed "Mourinho had a specific tactical role in mind" for the Germany global but changed his thinking once United completed a deal for Arsenal forward Alexis Sanchez in January. He was the third most creative player in Europe in 2017.