The circuit has been on the calendar since 1992 and is a home race for Spain's triple world champions Marc Marquez and Jorge Lorenzo.
This year's grand prix in June was marred by the death of 24-year-old local Moto2 rider Luis Salom after he crashed in free practice.
Spain currently has four races on the calendar with the MotorLand Aragon track and Valencia's Ricardo Tormo circuit, which hosts this weekend's season-ender, both also signed up until 2021.
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Jerez also remains on the 2017 calendar.
(Reporting by Alan Baldwin, editing by Toby Davis)
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