The deal mirrors Conte’s original contract in length, keeping him at Stamford Bridge until the summer of 2019, but contains improved terms for the Italian, Sky sources understand.
Conte signed a three-year deal when he took over last summer, and guided the Blues to the Premier League title in his first season in charge.
Conte said: “I am very happy to have signed a new contract with Chelsea. We worked extremely hard in our first year to achieve something amazing, which I am very proud of. Now we must work even harder to stay at the top.
“The Chelsea fans have given me so much support since I arrived here one year ago and it is important we continue to succeed together.”
Under the guidance of Conte, 47, Chelsea recovered from a 3-0 defeat at Arsenal on September 24 to mount an impressive run of form which saw them produce 30 wins – as well as a club-record 13 consecutive league victories. However, they missed out on the double when losing to the Gunners in the FA Cup final at Wembley in May.
Club director Marina Granovskaia added: “Antonio achieved incredible success last season, adapting to English football very quickly and leading us to the Premier League title.
“This new contract reflects our belief that he can continue to deliver results both domestically and as we return to European competition in the Champions League.”
The new contract was announced as Conte prepares to take Chelsea on their pre-season tour of Asia, where they will face Arsenal, Bayern Munich and Inter Milan.