Silva's previous contract would have expired at the end of this season.
The 46-year-old took over at Craven Cottage in the summer of 2021 when Fulham had just been relegated from the Premier League and he guided them back into the top flight at the first time of asking.
Silva then led Fulham to a 10th place finish last season, earning himself a nomination for manager of the season.
The former Hull City and Everton manager has won three of his nine games in the league this season, with Fulham sitting in 13th position.
Silva told the Fulham website: 'I’m really pleased to sign a new contract as it was something we had been discussing for some time. It’s always a good sign when both parties are happy and want to continue working together. I feel that the business is not done yet, we’ve had two great seasons, and the goal is clearly there to sustain this Club in the Premier League. This is key for the future of this Club, and we are working hard to achieve it.
'It is important to feel the trust and have the support of our owners. My relationship with them, and with Fulham Football Club as a whole, has been really important in this decision and the success of the last two seasons.
'The commitment and ambition that these players have demonstrated since day one has been the key to what we have achieved, and that will always continue to be the case, along with the unconditional support of our fans, who are fundamental. Let’s continue together on this long journey.'
Club owner and director Tony Khan posted on X (formerly Twitter): 'I'm delighted for @FulhamFC + the fans that Marco's with us until at least 2026! Through working together the last few years, we've developed a great relationship.
'I'm a huge admirer of Marco; his work ethic, professionalism + hunger for success encompasses the Club. Come on Fulham'.
