"Extremely happy to announce that I will be staying with Scuderia Ferrari for five more years," the 22-year-old said on Twitter.
The 22-year-old, who joined Ferrari in 2016, has impressed in his first season alongside four-time world champion Sebastian Vettel.
Leclerc had seven pole positions and two wins at the Belgian and Italian Grand Prix.
"I'm so grateful to be driving for such a team," said Leclerc.
"I've learnt so much during this first year with the team and it is a great starting point to build a strong relationship for the years ahead."
Leclerc came through the Ferrari Driver Academy and is the junior driver to German Vettel, whose contract at Ferrari ends after the 2020 season.
"With each passing race this year, our wish to extend our contract with Charles became ever more self-evident and the decision means he will now be with us for the next five seasons," said Ferrari team principal Mattia Binotto.
"It demonstrates that Charles and the Scuderia have a firm future together.
"Charles has been part of our family since 2016 and we are more than proud of the results we are achieving with our Academy.
"We are therefore very pleased to be able to announce that he will be with us for many years to come and I'm sure that together, we will write many new pages in the history of the Prancing Horse."
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