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The Russian international sealed the deal for an undisclosed fee, one day after working out all personal terms and passing a medical at the Premier League club.
"Arsenal Football Club is delighted to announce that Russian international midfielder Andrei Arshavin has joined the Gunners from Zenit St Petersburg on a long-term contract for an undisclosed fee," The Gunners' official website announced.
Arsenal's officials held lengthy negotiations with their Russian counterparts before reaching an agreement over the transfer fee.
The UEFA Cup winners put an initial £15 million price tag on Arshavin, who will probably make his Premiership debut against Tottenham Hotspur on Sunday.
Wenger delighted
Arsenal coach Arsene Wenger expressed his joy at the deal completion, dishing out praise for the 27-year-old.
"We are delighted to have signed Andrey Arshavin, he is a player I have admired for a long time," the French tactician said.
"He is a versatile player with great experience, who will add real quality to our squad.
"Andrei is an exciting impact player with a huge amount of ability and has been an influential force with both Zenit St Petersburg and the Russian national team in recent seasons."
Turning Point
Arshavin played a major part in Zenit's UEFA Cup winning campaign last season, but his magnificent displays in the EURO 2008 was the real turning point in his career.
During the continental competition, he scored two goals from three appearances, and was named in the 'Team of the Tournament'.
The 27-year-old, who will wear the number 23 Jersey at Arsenal, won the Russian Premier League with Zenit in 2007, making a total of 232 appearances for his previous club and scoring 51 goals.
A year later, the attacking midfielder helped his side claim the Russian Super Cup.
On the international stage, Arshavin has scored a total of 15 goals for his country with 41 caps.
Watch Arshavin's brilliant displays for Russia and Zenit: