joined the Avintia team last season, but had his year cut short by a leg injury sustained in a crash during a wet practice session at Silverstone.
The 2014 Moto2 champion's place at the team came was in doubt, as Moto2 frontrunners were touted to replace him at the customer Ducati squad.
Rabat himself was also linked a switch to WSBK with Kawasaki, but a solid run of races before the summer break elevated him to 19th in the standings and has secured his place at the team.
Avintia have also confirmed it is in negotiations to bring onboard a "major sponsor", and is seeking works machinery from Ducati for the next two seasons.
However, Ducati is already stretched to its limits in supplying the Pramac team with two works bikes for next year, which makes Avintia's ambitions unlikely.
"It is a pleasure to announce that Tito will continue with us for the next two seasons," said team CEO Raul Romero.
"There has been a lot of talk about Tito's future and the future of the team, but with this announcement we made it clear that we are moving forward together and that we will be stronger than ever before.
"The team grew steadily since we arrived in MotoGP and the next step is to get factory machines, the same way as all the other independent teams in the championship.
"We are working on this right now and we are also in negotiations with a big sponsor that perfectly matches the size of the project we are planning for the upcoming seasons."
On Tuesday, the Pons Moto2 team announced it would be continuing with Baldassarri and teammate for 2020, with Marquez now expected to remain with Marc VDS.
Marquez, along with Rabat, had been linked to the seat alongside at Kawasaki in WSBK.
However, current rider 's position within the team has looked more assured in recent weeks, with his part in Kawasaki's first Suzuka 8 Hours victory last weekend likely sealing his place for 2020.
Rabat will once again be partnered by at Avintia next season, who signed a two-year deal with the team last year.
2020 MotoGP grid so far:
Tech 3 KTM