The Frenchman moved to the Bernabeu from Lyon in 2009, and has scored 181 goals in 369 appearances for Los Blancos - winning two La Liga titles, two Copas del Rey and three Champions League trophies in the process.
Benzema only managed 19 goals in 48 appearances during the 2016-17 campaign, although he scored seven times in 16 Champions League matches as the Spanish giants became the first team in the modern era to successfully defend the European Cup.
Towards the end of last season, it had been claimed that the 29-year-old could be available for transfer this summer, but according to Le Journal du Dimanche, the experienced forward has agreed to extend his Los Blancos contract until 2021.
The report adds that Benzema was offered the chance to move to Chinese Super League outfit Tianjin Quanjin in January, but the Frenchman rejected the interest.
Real Madrid opened their 2017-18 La Liga campaign with a 3-0 victory at Deportivo La Coruna on Sunday night.