Chaves had already signed a contract which secured him to the end of 2018 but added another year only days after his historic Giro di Lombardia win.
The Bogata native is the first non-European to win Lombardia and the first Colombian to claim a monument.
Also this year, the 26-year-old finished runner-up in the Giro d'Italia and third overall in the Vuelta a Espana.
Those results confirmed him as a potential Grand Tour winner.
“I had a hard start (following a career-threatening crash),” Chaves said. “But the good thing is that every year we set some objectives and every year we meet these objectives and do a little bit more.”
“It has been a special three years with this team and if we continue on this line, good things will come.
"We have a really young team, there are a lot of strong guys under 30, so if we keep growing together over the next few years we will be really strong in all of the races."
The three-year commitment to Chaves also signals long-term security for ORICA-BikeExchange by team owner Gerry Ryan.
“I am super happy here and it is like one family. I never think to stay here for a couple of years and then look somewhere else because I am 100 per cent happy here," Chaves said.
"I want to stay here with the people who gave me the opportunity when no one else gave me the opportunity or believed in me.
“There are a lot of things that make this team different to any other team. This team is special and the last week in Italy showed this.
“We were in the last week of the season for a lot of guys but we feel like it is the first week of the season. Everyone is super excited, happy and laughing. It’s not demanding for us to race or be with the team because we are all really close.
“This team continues to work, this team continues to believe and the chemistry of this team is real and from the heart. It is special for me to be part of this organisation, this team and this family.”
