La Russa, 66, agreed to a one-year contract with an option for 2012.
He has been the Cardinals' manager since 1996, leading the team to seven division titles and the 2006 World Series championship.
"We are excited to have Tony returning and are looking forward to 2011," Cardinals Chairman Bill DeWitt, Jr. said "He has guided the team in one of the greatest eras in Cardinals history and we are pleased that he will continue that leadership next season."
St. Louis was 86-76 this past season, with those victories pushing La Russa's win total to 2,638 over 33 seasons as a manager. He trails only Connie Mack (3,731) and John McGraw (2,763) on the all-time win list.
He previously managed the Chicago White Sox (1979-86) and Oakland Athletics (1986-1995) and is one of two managers -- Sparky Anderson is the other -- to have won World Series titles with teams in each league.