Burfict's deal is worth $38.68 million, according to multiple reports.
The 26-year-old is playing through the final season of a four-year contract in 2017. He will miss the first three games of the campaign due to a suspension for repeated violations of on-field safety rules.
"Vontaze is still one of the young, emerging talents within the league," Bengals coach Marvin Lewis said in a statement. "We have worked hard at training, developing and retaining talented players. It's pleasing that Vontaze has made this commitment to be a part of the organization going forward.
"It was important to reach an extension before the start of the season and we look forward to having Vontaze back with the team in a few weeks."
Burfict has been a polarizing figure during his previous five seasons with the Bengals, highly productive with his play but repeatedly being disciplined for his transgressions.
The recent suspension was handed down after he delivered a hit on Kansas City Chiefs fullback Anthony Sherman during a preseason game.
Burfict had 101 tackles last season for his third time with more than 100 stops. He has recorded seven sacks, five interceptions and three forced fumbles in 58 NFL games (56 starts).