Jorge Lorenzo has committed his future to Yamaha by signing a new two-year deal through to the end of 2016.
The two-time MotoGP champion has been with the factory marque since 2008 after winning back-to-back 250cc titles.
Although financial issues had prolonged negotiations, the matter has now been resolved to the 27-year-old Spaniard's satisfaction.
Lorenzo said: "I am very happy to finally be able to make this announcement.
"It is a relief to be able to now completely focus on the remainder of the 2014 season in the knowledge our relationship will continue for the next two seasons.
"It has always been my wish to continue my career with Yamaha; I strongly believe we can fight for a third title together."
That third title will not be this year, however, with Lorenzo a lowly fifth in the standings, 128 points behind runaway leader Marc Marquez.