The extended deal was officially announced on Tuesday evening, with the German goalkeeper, 30, signing an initial three-year contract at Craven Cottage which includes a club option for a further 12 months.
standard sports understands the deal for Leno could be worth up to £8m, with £3m upfront and an additional £1m depending on Premier League appearances.
Arsenal would receive a further £2m if Fulham manage to avoid relegation this season, and a further £2m if they can do the same again in 2023/24.
“It’s amazing to finally be here. I’m looking forward to joining the team, training and playing with the team,” Leno told FFCtv. “I’m relieved everything is done. I’m just happy to be here. It took a bit of time but finally we got there and that’s the most important thing.
Leno is set to replace Marek Rodak as the first-choice between the positions under Marco Silva, with former Tottenham goalkeeper Paulo Gazzaniga also on the books.
The 30-year-old becomes Fulham’s fifth arrival of a difficult summer window which has often frustrated their manager and led to major doubts over their ability to reverse the relegation/promotion trend of recent years, following Joao signings Palhinha, Andreas Pereira, Kevin Mbabu and Manoir Salomon.
Leno had become surplus to requirements for Arsenal under Mikel Arteta, replaced as No.1 by Aaron Ramsdale last season after an early battle with Emiliano Martinez and with United States international Matt Turner now arriving from Major League Soccer (MLS) on the side of the New England Revolution to act as leader. deputy.
Goalkeeper Alex Runarsson is also set to leave before the September 1 transfer deadline amid interest from Turkey, where Lucas Torreira is also heading as he closes in on a £7.5m move. pounds to Galatasaray.
Arsenal are also hoping to offload Hector Bellerin and Pablo Mari in the coming weeks, while striker Folarin Balogun has agreed to join French side Reims on loan.