The 46-year-old's previous deal at Craven Cottage had been due to expire next summer, leading to speculation over his long-term future in West London.
However, he has now put pen to paper on fresh terms that will extend his overall stay at the club to five years.
«I'm really pleased to sign a new contract as it was something we had been discussing for some time. It's always a good sign when both parties are happy and want to continue working together,» he told the club's official website.
«I feel that the business is not done yet, we've had two great seasons, and the goal is clearly there to sustain this club in the Premier League. This is key for the future of this club, and we are working hard to achieve it.
»It is important to feel the trust and have the support of our owners. My relationship with them, and with Fulham Football Club as a whole, has been really important in this decision and the success of the last two seasons.
«The commitment and ambition that these players have demonstrated since day one has been the key to what we have achieved, and that will always continue to be the case, along with the unconditional support of our fans, who are fundamental. Let's continue together on this long journey.»
Chairman Shahid Khan added: «This is a wonderful day for Fulham Football Club. Specifically, it's a fantastic moment for Fulham supporters, who deserve our very best efforts to invest in the present and future of their club, both within and around the game.
»I'm happy to announce that we have a new contract with Marco Silva through 2025-26, and am confident this news will inspire our players and fans, both
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