It indicated, however, that the Briton's focus would no longer be entirely on Formula One.
"As part of this new agreement, Adrian will work on new Red Bull Technology projects, as well as advising and mentoring Infiniti Red Bull Racing as it develops its Formula One cars over the next few seasons," the team said in a statement.
It said details of the new projects would be announced in due course.
Newey has been at Red Bull since the start of the 2006 season after designing title-winning cars for Williams and McLaren.
Milton Keynes-based Red Bull have won the last four drivers' and constructors' championships in a row with Germany's Sebastian Vettel.
Newey had made clear last month, when he moved to quash speculation about a possible big money bid from rivals Ferrari, that he wanted to stay at Red Bull despite the current domination of Mercedes.
"I remain committed to Red Bull for the foreseeable future," the 55-year-old Briton said at the Monaco Grand Prix.
Newey has been linked to Ferrari in the past as well as a switch to Americas Cup yachting, but has forged a close working relationship with Red Bull team principal Christian Horner.
Horner told reporters in Monaco that Newey had a "paternal feeling" towards Red Bull.
"He has been involved (with the team) since the beginning,is much more involved than he has been at any other team, and he enjoys the environment he works in," said the Briton.