The Spain U21 defender signed for the Gunners from Valencia in August.
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Mosquera has made a total of five appearances in the Premier League, starting two matches.
He said, "I feel great at the club and the city. After speaking with Mikel Arteta (head coach) I was sure I wanted to come here."
However, the competition for the starting spots in central defence is tough. William Saliba and Gabriel Magalhães are ahead of him.
"It's a fantastic group of players. There are also many who are Spanish speakers who have helped me adapt," he continued.
"When I signed I knew I would be competing with them, two world-class players, but that was the club's idea - to have players competing for playing time in every position."