Barnes’ new contract at the King Power Stadium will extend his Leicester City stay until the summer of 2025.
The 23-year-old came through the Leicester City youth ranks and established himself in the first team in the second half of the 2018/2019 season after spending loan spells at M.K Dons, Barnsley and West Bromwich Albion.
Barnes made 35 appearances in all competitions for the Foxes last season, scoring 13 goals and providing four assists, but his campaign ended in March due to a knee injury which also forced him to miss EURO 2020.
Barnes, who has played more than 100 appearances for the club, said: "I've been here for so many years now, it feels like home. For me, it was a no-brainer. Of course, I wanted to extend my stay here.
"It's been something that's been going on in the background and to sign now is great. It's right at the start of a new season as well, which I know everyone is excited about."
Barnes started Leicester’s opening league win over Wolverhampton Wanderers on Saturday as well as the Community Shield victory over Manchester City.
Barnes won his solitary England cap against Wales in October last year.
