Boss Dean Smith tried to bring the highly-rated young attacker to Villa Park earlier this summer, as two bids – the second of which totalled £30million – were turned down by the Gunners.
But the 20-year-old has put any speculation on his future to bed by committing his future to the club he grew up supporting.
Smith Rowe has also been rewarded for a breakthrough campaign last term by switching numbers to No.10 for Mikel Arteta’s side.
Villa Park boss Smith has already improved on the creativity in his attacking midfield ranks this summer with the club-record signing of Emi Buendia from Norwich. The Argentine shone on his non-competitive debut at Walsall on Wednesday evening.
Meanwhile, it has been claimed that Stoke City are interested in taking Villa frontman Keinan Davis on a season-long loan deal.
Striker Davis, 23, has been on the club’s books since 2016. It is reported talks between clubs are at an early stage.