The new deal will reportedly see Vidal's wages increase to five million euros per year.
A statement from Juventus read: "Arturo Vidal has signed a contract extension with Juve until 2017.
"Vidal is one of the most complete players in the world and can play in any role.
"His story in Turin began two years ago but he has already made a mark.
"We hope he will continue to write many more memorable pages in the history of Juventus."
The Chile midfielder was strongly linked with a move to Real Madrid this summer after his impressive performances helped Juve win back-to-back Serie A titles.
However, Vidal, who joined Juve in 2011 from Bayer Leverkusen for nine million euros, always stated his wish to remain at the Bianconeri.
"It's a very important day in my life and I hope that the Juventus fans will be happy," Vidal said.
The 26-year-old scored 15 goals and set up a further 11 in all competitions last season.