The 31-year-old Spain star's current deal was due to expire next June.
The defender, who sat out the Catalan giants' shock 2-1 home defeat to Russian minnows Rubin Kazan in the Champions League on Tuesday, will sign the new agreement in the coming days.
"Carles has been here for many years and is the heart and soul of the dressing room. For this reason, it is fantastic news," team-mate Xavi said.
Puyol joined the club's youth system in 1995 and made his first team debut on October 2, 1999 against Real Valladolid.
The shaggy-haired defender has gone on to make 451 appearances for Barca, the fourth highest for the club, helping them to win three Liga titles, two Champions League titles and a Copa del Rey.
Barca, top of La Liga on 19 points from seven matches, welcome Real Zaragoza to the Camp Nou on Sunday.
Reuters.
PUYOL HONOURS
2009-10 / European Super Cup
2009-10 / Spanish Super Cup
2008-09 / Champions League
2008-09 / Copa del Rey
2008-09 / League title
2006-07 / Spanish Super Cup
2005-06 / Champions League
2005-06 / League title
2005-06 / Spanish Super Cup
2004-05 / League title
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