The Brazilian Grand Prix will remain a fixture on the Formula 1 calendar until at least 2022 and will remain at its current home, Interlagos.
Bernie Ecclestone met with Sao Paulo mayor Fernando Haddad on Wednesday to sign the new contract.
As part of the deal, the circuit must proceed with its upgrade plans which include a new pit and paddock complex located between what is currently turn three and four.
Ecclestone had approached other Brazilian cities with the idea of re-locating the race, but after discussions with Haddad, agreed that Sao Paulo remains the most suitable location for the race.
Related: Sao Paulo to invest £60m to upgrade circuit