Around 780 extra seats will be added to increase capacity, taking the stadium's total seating number to just over 60,600. Construction will be completed in two stages during the summers of 2018 and 2019.
Capacity at the stadium has been reduced in recent years due to safety requirements and improvements to facilities for disabled supporters.
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In addition, plans are in place to upgrade and refurbish additional areas of Club Level over the next two years.
Arsenal's Chief Commercial Officer, Vinai Venkatesham, said: "The development of Club Level is crucial to ensuring fan experience at games is at its best whilst also enabling us to stay at the forefront of stadium hospitality.
"As we continue to face high demand for tickets in all areas of Emirates Stadium, this is a significant investment to ensure that as many supporters as possible are able to watch the team play at Emirates Stadium."
(LM/JP)
