Luongo, 30, finished 2008-09 with a 33-13-7 record, his fourth consecutive season with at least 30 wins.
He established a franchise single-season shutout record (nine) despite playing in only 54 games. Luongo was named team captain before the season and set a franchise record by playing 242 minutes, 36 seconds without allowing a goal, the second-longest streak in modern NHL history.
"He is in the prime of his playing career and has a tremendous desire to make the Canucks a championship team," Mike Gillis, Vancouver's president and general manager, said on the team's Web site. "His leadership, competitiveness and character are what this team will represent for many years to come."
"This is a great day for me and my family," Luongo said. "I love playing in a passionate hockey city like Vancouver."