Vettel has been with Red Bull since 2009, claiming 29 victories, 39 pole positions, and winning three successive world titles, BBC reports.
According to the report, the latest extension has extended one more year to Vettel's three-year deal up to and including 2014, which he had signed in March 2011.
Although last week Vettel had said that he might quit the sport in five years' time, he had made it clear that he was not talking with any specific timetable in mind, adding that he will stop driving when he longer has the urge to do so.
The report further said that earlier this year, the German was linked with a move to Ferrari but the Italian team's Ferrari president Luca Di Montezemolo said in February that Vettel would not be joining them as long as Alonso was there.
So far this season, Vettel has won three races - in Malaysia, Bahrain and last weekend in Canada - and leads the F1 Drivers' Championship by 36 points from nearest rival Fernando Alonso, the report added. (ANI )