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"Real Madrid C. F. and Varane have agreed to extend the player's contract, which will see him remain at the club until 30 June 2022," the Spanish giants said in a statement.
Marcelo, Isco and Dani Carvajal have also extended their deals to 2022 over the past fortnight, whilst Karim Benzema signed on till 2021 as Real reward key members of the squad that became the first side to retain the Champions League trophy in June.
A new contract for coach Zinedine Zidane is also imminent with the Frenchman repeatedly stating his deal is "done", although no official announcement has yet been made.
Then in a previous role as a club adviser, Zidane played a key role in bringing Varane to Madrid as an 18-year-old back in 2011 from Lens.
The Frenchman has since blossomed into vital player for club and country making 196 appearances in total for Madrid.
Varane has won 13 trophies in his time at the Bernabeu, including three Champions League and two La Liga titles.
This season he has fully established himself as a first team regular alongside club captain Sergio Ramos at the heart of the Madrid defence following the departure of veteran Portuguese international Pepe.