Vettel's original contract was set to expire at the end of 2014 but the team announced on Tuesday that the reigning world champion will also be on board for 2015.
Vettel joined Red Bull at the start of 2009 and became the youngest ever world champion in 2010.
He subsequently secured the 2011 and 2012 titles and leads this year's championship by 36 points.
Vettel has taken 28 wins, 50 podiums and 38 pole positions with Red Bull.
Red Bull has not yet confirmed who his team-mate will be in 2014.