This means Buffon will continue playing active football until he is 46.
Buffon signed a two-year contract when he returned to Parma for a second spell in the summer of 2021.
The former Juventus shot stopper, considered one of the greatest of his generation, has made 23 appearances for 13th placed Parma this season.
“This is a good day for me, for my family, for my agent,” Buffon said on signing his new deal. “In the end, what I wanted happened, what I think the president wanted and what I hope the fans and the city wanted.
“My return to Parma was inevitably conditioned by a deep bond that I have always had with the people of Parma, as well as by the great enthusiasm and honesty of a person like the president.
“If I hadn’t believed in this and what (owner Kyle) Krause has in mind I would not have accepted this type of proposal.”
Buffon started his professional career with Parma, winning the Coppa Italia, Italian Super Cup and UEFA Cup before Juventus snapped him up for a then world record fee for a goalkeeper in the summer of 2001.
With the Old Lady, Buffon won 10 Serie A titles and five Coppa Italia trophies among numerous other honours across two spells before deciding to call it quits in Turin.
He also spent the 2018/2019 season in France with Paris Saint Germain, winning the Ligue 1 title and Trophees des Champions.
Buffon won the FIFA World Cup with Italy in 2006, amassing 176 caps for the Azzurris.
