The contract is reward for the 26-year-old Slovenian's astonishing season of dominance which saw him capture a Tour de France and Giro d'Italia double, the world title and Monuments at Liege-Bastogne-Liege and a fourth Tour of Lombardy.
In all, Pogacar racked up 25 wins across the calendar.
His triple crown of Giro, Tour de France and world title had not been achieved in the same season since Stephen Roche in 1987.
"I am extremely proud to be extending my time here at UAE Team Emirates. This team has been my home now the last five years and I truly can't imagine myself anywhere else," said Pogacar.
"The best moments of my career have come at UAE and that is a testament to all of the staff, management, teammates, and partners who all allow me to perform at the highest level.
"I'm really excited for the future. This team gives me the best chance at fighting for wins and that is exactly what I aim to do."
Since signing for UAE in 2019, Pogacar has claimed 88 victoires and has already been installed as favourite for a fourth Tour de France victory next year.