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Foord’s previous deal was due to expire this summer and she had been attracting interest from plenty of clubs, including Juventus.
Arsenal, however, have persuaded the 27-year-old to sign a new contract with them and she is staying in north London.
Foord, who joined Arsenal in 2020, has been in fine form for the Gunners, scoring 23 goals in 62 appearances for them.
“It feels amazing,” said Foord. “Since I joined this club, I’ve absolutely fallen in love with being here.
“I think I mentioned in one of my early interviews that I had lost my way in football a bit, but since being here I’ve absolutely fallen in love and found myself again.
“We’ve been inching towards winning lots of silverware and that’s definitely going to be the plan for next year.
“We want to win multiple trophies and I think with the squad, the team, the players and the support we have, we have the squad to be able to do it.”