Clarke, who can play at centre-back and right-back, will join the club's academy and made his debut for the club's Under-18s on Saturday, hours after his move was confirmed.
The Wales international was part of the Under-17s side who reached the Euros finals last May and leaves Wolves after seven years in the youth setup.
Clarke wrote on Instagram: "The time has come for me to move onto a new chapter. I want to thank everybody who has helped me along the journey, and I wish all of my teammates at Wolves the best of luck for the future."
An Arsenal statement today read: "We are delighted to announce that Wales Youth International Brayden Clarke has joined us.
16-year-old Brayden, who joins us as a first year scholar, has spent his early years with the academy at Wolverhampton Wanderers."
