Manchester City assistant manager and former Gunners captain Mikel Arteta was strong favourite to succeed Arsene Wenger.
Emery emerged as the unanimous choice following a recruitment process in which all candidates were spoken to.
The 46-year-old Spaniard is available after leaving Paris St-Germain where he won one Ligue 1 title and four domestic cups in two seasons in charge.
Previously he guided Sevilla to three consecutive Europa League triumphs between 2014 and 2016.
Emery announced last month he would leave French champions PSG when his contract expired at the end of the season. He was replaced by former Borussia Dortmund boss Thomas Tuchel, who had also been linked with the Arsenal job.
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