Buffon won 10 Serie A titles with Juventus and has played a record 657 games in the Italian top flight.

"For me and my family, this is a wonderful day. I hope that the city and all fans will be happy," said Buffon.

Buffon - who made his Serie A debut for Parma in November 1995 - has played 23 league games this season for the club, who are 13th in the 20-team Serie B after 26 matches.

"My return to Parma was linked to the relationships and the deep bond I have always had with this city," added Buffon.

"If I hadn't believed in what the president has in mind and in what we are doing, I would not have accepted this proposal.

"I am optimistic for the future of this club. It is a beautiful and exciting challenge for me."

Buffon announced the new deal in a news conference on Monday, at which he was joined by club president Kyle Krause.

"In addition to leadership qualities, he has great human qualities. For Parma, his decision to continue with us is an honour," said Krause.