Red Bull team principal Christian Horner has called the new deal a “real statement of intent” as the Milton Keynes outfit maps out its future.
The Dutchman already had a contract that covered the 2022 and 2023 seasons after a previous extension was announced in January 2020.
The seven-year total duration of the new arrangement is believed to be the longest driver deal ever signed in F1.
After winning the 2021 world championship in Abu Dhabi Verstappen joked that he wanted to stay with the team for the next “10 or 15 years”, and Red Bull motorsport boss Helmut Marko confirmed shortly afterwards that an extension was in the works.
Ahead of the official confirmation of the deal the Dutch media suggested on Wednesday that a new contract could be worth up to €50m a year.
Although Red Bull has lost its works Honda support, the team has recently concluded some major sponsorship deals, including a title sponsorship with Oracle and a $150m deal with cryptocurrency platform Bybit.