The 33-year-old has been at the club since 2009 and he has been one of the most influential figures in Real Madrid history. He has won every trophy at the club level with Los Blancos.
The striker has been performing consistently at a high level ever since he moved to the Spanish club and he is now an indispensable asset for Real Madrid.
Benzema was the top scorer for the La Liga giants last season and he managed to pick up 30 goals across all competitions.
Real Madrid ended the season trophyless and they will be desperate to win some silverware this season.
Carlo Ancelotti needs to hold onto his best players in order for that to happen and the extension of Karim Benzema will come as a massive boost to the fans and the dressing room.
There is no doubt that Benzema is one of the best players in the world and despite his age he has a lot to contribute at the highest level.
As per reports, the player will stay at Santiago Bernabeu until the summer of 2023 and paper works have been completed between the two parties. An official announcement is expected soon.
The likes of Dani Carvajal and Thibaut Courtois have also signed new deals with Real Madrid recently.
It appears that Florentino Perez is looking to keep the spine of the squad intact.