Mitrovic was touted as one of the first names to leave Fulham following the club’s relegation from the Premier League last season.
The 24-year-old reportedly rejected offers from China and other Premier League clubs to pen his new deal.
The Serbian international striker scored 11 Premier League goals but could not prevent Fulham’s demotion to the Skybet Championship in a season that saw the London club go through three managerial alterations.
Fulham have eventually settled on former England international Scott Parker to lead the club’s revival to the Premier League from the dugouts and he will be delighted to see Mitrovic put pen-to-paper until the summer of 2024.
"I feel great. I'm really happy and I'm looking forward to playing here next season," Mitrovic told the club's website.
"There were a lot of clubs interested but in the end I decided to stay here because I'm really happy and settled at Fulham. My kids, wife, all my family are happy here. This is my home and I am really happy to sign a new deal.
"Since the first day I came here I have received a great reception from everyone in the club and the fans. I feel motivated and every morning when I come here to work I am happy. I have found my happiness and passion here."
Mitrovic initially joined Fulham on loan from Newcastle United in the second half of the 2017/2018 season, and his 12 goals helped the club gain promotion to the Premier League before the Cottagers sealed his permanent stay by shelling out £22m for his services.
A statement on fulhamfc.com read: “The club is absolutely delighted to announce that Aleksandar Mitrovic has committed his future to Fulham.
“A hugely popular figure in the changing room and among the fans, we look forward to having Mitrovic leading the line in our promotion charge.”
