"This has been an incredible year for me and I'm delighted to finish it off by signing a new contract with Team Sky," the 28-year-old Briton said in a statement on Monday.
"I've been with this team since the start and I know this is the right place for me to continue to grow."
The Kenyan-born rider won the Tour de France for the first time in July, emulating the 2012 success of fellow Briton Bradley Wiggins.
Team Sky also extended the contracts of other members of their team including Peter Kennaugh, David Lopez and Ian Stannard.
(Writing by Pritha Sarkar editing by Tony Jimenez)
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