The Frenchman has put pen to paper on a new contract with the Spanish giants which expires in 2019, having spent the last five years with the club
The Frenchman has been at the club since 2009, when he moved to the Santiago Bernabeu from Olympique Lyonnais for a fee of around €35 million.
His current agreement with the European champions was due to expire next summer, leading to speculation over his future, but Madrid have confirmed that he has put pen to paper on a new deal.
"Real Madrid announce the extension of the contract between the player Karim Benzema and the club until June 30, 2019, the next five seasons," he club statement read.
During their European Cup winning campaign last term, the 26-year-old scored five goals in 11 appearances, in addition to 17 in La Liga.