The 17-year-old has made 11 appearances for the Saints in the Premier League this season, including a man-of-the-match performance in a 1-0 victory over Reading at the St Mary’s Stadium.
There had been rumours suggesting Shaw could follow in the footsteps of Alex Oxlade-Chamberlain and Theo Walcott by quitting Southampton to join Arsène Wenger’s side.
But the England Under-17 international has instead opted to follow the lead of Saints team-mate James Ward-Prowse by committing his future to the club.
“I have spoken with the chairman about a long term plan for me at the club,” Shaw told Southampton’s website.
“To put an end to all the speculation, I will be committing my future to Southampton. I’m not going anywhere.
“I think Southampton is the place to be for young kids like me. I’m playing in the Premier League for the First Team and that is all anyone wants to be doing, so I just want to carry on.
“I have been at Southampton since a very young age so I’ve been here a long time now. I think they are happy with me here, and this club is great for young players like us.
“If you look back over the years, Adam [Lallana] has come through the youth system and now he is the captain of the first-team, and Prowsey [James Ward-Prowse] has just signed a five-year deal – and that is what I want to be doing.
“We have a lot of trust in our youth and there are more players coming through next year, so hopefully we will just carry on going.”
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