Arsenal manager Mikel Arteta has agreed on a new contract that ties him to the English Premier League club until 2027, a person with knowledge of the deal told The Associated Press on Thursday.

The person spoke on condition of anonymity because the deal has not been publicly announced.

Arteta has been at Arsenal since December 2019 and transformed the team into Manchester City's main title rival by finishing runner-up in the last two seasons.

His previous deal was due to expire at the end of this season and speculation mentioned him as a potential successor to Pep Guardiola at City.

The 42-year-old Spanish coach was Guardiola's assistant at City before succeeding Unai Emery at Arsenal and winning the FA Cup in his first season in charge.

Two seasons ago, Arsenal spent 248 days at the top of the league but was beaten to the title by City. No other team had spent so long in first place without being crowned league champion.

Last season, Arsenal pushed City even closer when taking the title race down to the last day, and eventually finished two points behind Guardiola's team.