On 20 July 2016, Heaton signed another new contract, this time a four-year deal running until the summer of 2020. On 29 October, Heaton made numerous saves during the match against former club Manchester United, the highlight being a mid-air, fully extended save of Zlatan Ibrahimović that Heaton claimed "nearly broke arm". Afterwards, Heaton required medical attention but remained in the match to lead Burnley to a 0–0 draw, being named Man of the Match in the process. In the same season on 22 January 2017, Heaton made his 150th league appearance for the club as he was beaten by a 97th-minute penalty from Alexis Sánchez that saw Arsenal win 2–1.