Arteta said after the win that Balogun had endured a few testing months recently after being linked with moves to Brentford and Aston Villa.
“He had some difficult months with all the speculation around him, he’s handled the situation in a really mature way.
“He wants to stay, we want him to stay. We gave him the opportunity and he took it straight away.”
Arsenal are back in action on Sunday when they host Wolves in the late kick off (7:15pm).