Speculation over the future of the England scrum-half had been hotting up, but he has now put it all to bed after putting pen-to-paper with the struggling Tigers.
Youngs, who made his Tigers debut as a 17-year-old back in 2007, has made 244 appearances for the club and is looking forward to continuing his career in the East Midlands.
It has even been suggested that Youngs, who has 98 caps for England, has taken a pay cut to stay at Welford Road, where he has won four Premiership titles.
"Leicester is my home and Tigers are my family. I've spent my whole career here and I'm proud of what I've achieved in green, red and white," Youngs said. "It's pleasing for this to be over, so everyone can stop reading about it!
"Everyone outside of the club has had their say on whether or not I should or would remain, which is the way it is now in the world, but I've always wanted to remain here and any suggestion I didn't or don't give my everything for Leicester is way off the mark."