The new deal will keep the 20-year-old at Upton Park until 2013.
“It’s been a really good year for me. It’s a nice Christmas present and a good way to end the year after making my debut for the senior team at Arsenal at the beginning of the year,” Collison told the club’s official website.
“I now want to claim a regular place in the starting eleven if I can and really push on now.
“I’m delighted that the club wants me here for a long time. It gives you security and, now it’s sorted, I can just concentrate on my football.
“I’ve worked my way through from the youth team to the first team and want to be a regular part of it all.
“The new manager has come in and given me the confidence to show what I can do and now I’m aiming to make the most of all my opportunities on the pitch.”
