The 30-year-old World Cup-winning midfielder, the team's most successful player with 189 goals in 424 matches, has committed until June 30th, 2026 with an option for a third season.
"Today is a very happy day for me, my family and friends," said Putellas, who comes from the province of Barcelona.
"I'm eager to continue the path we are on, to continue winning and achieve many more titles. I'm very proud to say I'm from Barcelona and will continue to be so."
Putellas is among the first superstars of women's football, the only one to have won the Ballon d'Or twice in a row in 2021 and 2022.
Despite repeated injuries, she remains a key element for Spain and Barcelona where she has played for the past 12 years.
She has won 29 major trophies with the club and could take her tally to 30 should she win the Champions League title for the third time against French club Lyon on Saturday.
