The decision comes a year after the former Real Madrid coach arrived in Brazil, in May 2025, and less than a month before the 2026 World Cup.
"A year ago, I arrived in Brazil and realised what football means to this country. We are working to bring the national team back to the top of the world, but both the CBF and I want more.
"We are very happy to announce that we will continue together until the 2030 World Cup," said Ancelotti.
So far, Ancelotti has led the national team in 10 matches, recording five wins, two draws, and three losses. Under his leadership, the team has scored 18 goals and conceded eight.
CBF president Samir Xaud called the extension a "historic day" and emphasised that keeping the coaching staff is a strategic move for the future of Brazilian football.
"This renewal is another strong step in our commitment to provide the national team with an increasingly strong, modern, and competitive structure. We are working to keep Brazil at the highest level," said the president.
The new contract ensures that Ancelotti will have a full cycle leading up to the next World Cup.