The 31-year-old Croatia midfielder, Luka Modric has been with the Spanish club since transferring from Tottenham in 2012, playing a key role both defensively and offensively.
Real Madrid has extended his contract until June 2020.
He was a starter when Madrid won its most recent Champions League titles, in 2014 and last season.
Modric has been sidelined from recent matches because of a left-knee injury.
Tuesday’s announcement comes less than a week since Germany midfielder Toni Kroos had his contract extended to 2022.