The 44-year-old's contract was due to expire at the end of 2008 but FoxNews.com claims he has signed to remain with Comedy Central until 2010.
Since joining the show in 1999, Stewart has added the role of executive producer to his credits and also launched the spin-off show The Colbert Report, hosted by new presidential candidate Stephen Colbert.
In a statement released by Comedy Central, Stewart says, "I love doing the show. I feel like I work with and for the best in the business. I look forward to using this extension to having great fun at President Colbert's expense."
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