The Spurs did not disclose terms of the deal.
"It is quite obvious how important Manu has been to our program," Coach Gregg Popovich said. "It is a great feeling to know that one of the best players in the world will continue to be a Spur."
The 32-year-old Ginobili has played in 550 games with the Spurs and helped them win three league championships.
The NBA named him Sixth Man of the Year in 2008.
Ginobili has averaged 16.5 points, 4.9 assists and 3.8 rebounds in 72 games this season.
The numbers are close to his career stats of 15 points, 3.7 assists and four rebounds per game.
Ginobili, a native of Argentina, has connected on 801 3-point shots in 2,125 attempts.