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The Gunners destroyed Sevilla 6-0 in the Emirates Cup on Saturday afternoon and made the announcement prior to kick-off.
Odegaard initially joined Arsenal on loan from Real Madrid in January 2021 before making the move permanent the following summer.
He is seen as an important part of Mikel Arteta's side and also captains the Norway national team.
It is a testament to the midfielder's temperament and character that he wears the armband for club and country despite being 23-years-old.
The announcement means Odegaard is one of the youngest captains in the English top-flight.
West Ham United star Declan Rice, who turned 23 in January and one month after Odegaard, takes that honour after taking the armband from the retiring Mark Noble last season.
Bournemouth defender Lloyd Kelly is also the same age but will turned 24 in October.
Alexandre Lacazette took the Arsenal armband last season after Pierre-Emerick Aubameyang was stripped of the captaincy for disciplinary reasons.
The France international has since departed for Lyon and it has given Arteta the chance to continue his squad revamp.
A statement from Arsenal reads: "We are delighted to announce that Martin Odegaard has been named our new men’s first-team captain.
"The 23-year-old has made a huge impact since arriving at Emirates Stadium from Real Madrid in January 2021, initially on loan, and has gone on to play 60 times and scoring nine goals.
"Odegaard has experience of wearing the armband, having been Norway captain since March 2021, whom he has won 43 caps for.
"We wish Martin every success as our captain."
Arsenal continued their unbeaten run in pre-season with a dominant victory over Sevilla.
Braces from Gabriel Jesus and Bukayo Saka put Arsenal 4-0 up inside 19 minutes to send the Emirates Stadium wild.
Jesus managed to grab his hat-trick in the second half and Eddie Nketiah found the sixth late on.
Arsenal finished fifth in the Premier League last season and missed out on Champions League qualification by two points.
They kick-off the campaign away to Crystal Palace on Friday evening. They will be looking to avenge their 3-0 defeat at Selhurst Park back in April.
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