David, along with Les Ferdinand, Daryl McMahon and Steve Bywater, was out of contract this summer after signing a short term deal following his departure from Highbury in January, and he says: "I am pleased and I am going to take it. It was frustrating at Arsenal and that is what led me to want to get out in the end because there was no real opportunity there for the young talent.
"It seems to be since I have left they have realised that they have got no money, and they are thinking about playing a few of them, as they did at the end of the season - but I have no regrets.
"West Ham is the best club in the country for producing the young talent, as has been shown over the years.
"I thought I could earn myself a contract but when you are only on a short term deal it is a bit worrying. It has turned out okay, though.
"Relegation hasn't affected my thoughts and in my short time at the club I have seen what I wanted to see regarding my future, and this is a good place for me."
David spent several months at Watford on loan from the Gunners two seasons ago, and he adds: "I have been in the first division with Watford and from what I have seen West Ham will definitely come back up.
"I think it is the teams that do play the football end up coming up every year - the Portsmouths, the Leicesters - and the ones that play the other way don't normally make it.
"There shouldn't be any worries if we play to our potential."
David, a self-confessed Gooner, adds: "I have supported them since I was a boy so I rooted for them on Saturday - but not to the extent that I would have done a few years ago.
"My aim now is just to get in the first team with West Ham."
More immediately, David is in the Scotland Future squad that faces Northern Ireland on Tuesday, along with Christian Dailly and Don Hutchison.
Scotland then play a European Championship qualifier against Germany on June 6.