Edwards, the current NASCAR Sprint Cup points leader, was due to become a free agent at the end of the season, with several teams coveting his signature.
The 31-year-old American had been tight-lipped on his future, but today said he was 'honoured' as he and Roush Fenway announced a multi-year extension to their current deal.
Edwards made his Sprint Cup debut with Roush Fenway in 2004, and has since taken 18 Cup victories and one Nationwide Series crown for the team.
"I sincerely appreciate the amazing opportunity that Jack Roush has given me in this sport and am honoured to race for him," Edwards said.
"As an organisation Roush Fenway provides the resources I need to win, and as a driver, that's the most important thing.
"We're having a fun season on the race track as we're leading the points and in great position for the Chase. That's the result of a lot of hard work from the men and women at Roush Fenway, Ford Motor Company and Roush Yates Engines.
"I really enjoy competing with this group and looking forward to continuing that relationship into the future."
Roush Fenway co-owner Jack Roush was delighted to announce Edwards' extension, saying: "Carl Edwards has achieved a level of success on and off track that would put him at the top of the list for any race team.
"We saw great potential in Carl a decade ago, and it's been a thrill to watch him grow into one of the sports' premier drivers behind the wheel of the No. 99.
"Carl and the team are having a terrific season again this year, and we're thrilled that our relationship will continue for many more."
Edwards will make his 250th Sprint Cup start this weekend at Pocono, where he has won twice in the past.
Following today's announcement, Earnhardt Ganassi's Juan Pablo Montoya and Richard Childress Racing's Clint Bowyer remain the main drivers to reveal new deals.
AUTOSPORT understands Montoya has all but agreed a multi-year renewal with Ganassi while Bowyer said last week at Indy that he is close to resigning with RCR.
