The partnership, which began at the start of the 2007 season, will continue at least until the end of 2010.
Yamaha's executive officer of engineering operations, Masao Furusawa, said: "I heartily welcome the extension of the agreement with FIAT for another two years. We will be working to continue the great partnership that resulted in winning the triple crown in 2008."
Valentino Rossi won the MotoGP title for the FIAT Yamaha team this year, while Jorge Lorenzo finished fourth overall as the top rookie in the series.
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