The 31-year-old’s current deal ends in June 2018 but the Portuguese forward will sign a new contract on Monday that will end when he is 36.
It has been reported that Ronaldo’s weekly wage will remain at around £365,000.
He has scored 371 goals since joining from Manchester United in 2009.
The Portuguese has helped Real win the Champions League twice and one La Liga title since moving to Spain’s capital seven years ago.
Real said in a statement that Ronaldo will sign his new deal at the Bernabeu - and the announcement comes a week after his team-mate Gareth Bale extended his contract with the Spanish giants until 2022.
Ronaldo helped Real cement their place at the top of the La Liga table by beating Leganes 3-0 on Sunday.
After the game, Real boss Zinedine Zidane described Ronaldo as “unique”.
Zidane added: “It is his dream to end his career here.
“I am happy that he can renew [his contract] and finish with this white shirt like I did a long time ago.”
