Ospina said that he is looking forward to the challenge of competing in the Europa League with Nice after the "sublime" 2012-13 season.
"I'm very pleased to announce that I have agreed terms with the club so that we can continue our adventure together," he told the club's official website.
"Since my arrival, we've had some tough seasons, but the one that just finished was nothing short of sublime. It marked the beginning of an ambitious plan put together by club president Jean-Pierre Rivere and coach Claude Puel, and I really want to be a part of it."
The 24-year-old has been capped 32 times by Colombia.