The midfielder has enjoyed an outstanding campaign, scoring 14 goals in all competitions, with los Colchoneros moving quickly to tie him down to a fresh deal
The 27-year-old joined los Colchoneros from Osasuna in 2007 and though he returned to his former club on loan for the 2011-12 campaign, he has since gone on to become a key man in Diego Simeone's midfield.
This season alone Garcia has scored 14 goals in all competitions and La Liga's third-placed club have moved swiftly to tie him down to a long-term deal, which the player confirmed on Monday.
He said: "I am very happy with the agreement. Both the club and I wanted this deal because I'm very comfortable here."
Atletico's sporting director, Jose Luis Perez Caminero added: "Raul has earned his renewal thanks to hard work.
"He's been a very consistent player for the past two seasons and become one of the strongest figures in the dressing room. He is one of three captains at this club.
"He is effective in defence and attack and we are delighted with this agreement, hopefully we can continue to work together for many more years."