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The 29-year-old joined the Spanish champions in a €35m deal from Olympique Lyonnais in 2009 and his current deal at the club was set to expire in June 2019.
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The striker, who is currently suffering from a hamstring injury, has scored 181 goals in 371 appearances since joining Madrid, and now has a deal which will run until he is over 33years of age.
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“I’m delighted to prolong my stay at the world’s best club,” Benzema was quoted as saying by Real’s official website.
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“I want to retire here because no other club compares to here and this will be the last club of my career, I believe.
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“I’m very proud of what I have achieved here but I must focus on the future and trying to win more titles.
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“My job is more than just scoring goals – you have to be involved in team play, linking-up with teammates, creating chances, working spaces and here the scrutiny and demands are higher than anywhere.
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“There is always a lot of criticism when you are at Real Madrid, but this is normal and the expectations drive you on.”
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Benzema has won 14 trophies at Real, including three Champions League titles and La Liga twice.
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