Leclerc finished fifth in the drivers' championship last season
The 26-year-old made his Formula 1 debut with Sauber before signing a five-year contract after an impressive first season with the team in 2019.
Monegasque Leclerc finished fifth in the drivers' championship last season.
"To race for this team has been my dream since I was three years old," he said., external
"I used to watch the Monaco Grand Prix from the window of a friend's apartment at Saint Devote corner and I would always look out for the red cars.
"This team is my second family ever since I joined the Ferrari driver academy in 2016 and we have achieved a lot together, fighting through thick and thin over the past five years.
"However, I believe the best is yet to come and I can't wait for this season to start, to make further progress and be competitive at every race.
"My dream remains that of winning the World Championship with Ferrari."
Ferrari have not specified the length of Leclerc's new contract. His previous one ran until the end of 2024 and the new one is said to be for a further five years, running until 2029.
His salary has been reported to be set to rise from his current 25m euros (£21.3m) a year to 50m euros (£42.6m) by the end of the contract.
Leclerc has had five race wins and 23 pole positions with the Italian team. His most successful season was 2022, when he came second in the drivers' championship and won three grands prix.
"His values and those of our team are intertwined and so it was natural for us to be in agreement on extending our collaboration," said team principal Fred Vasseur.
"We know him for his incessant desire to push himself to the limit and we appreciate his extraordinary abilities when it comes to fighting and overtaking in a race.
"We are determined to give Charles a winning car and I know that his determination and commitment are elements that can make the difference in helping us reach our goals."
-- Courtesy of BBC Sport