Busquets extends Barcelona contract
The deal includes an option for a further year depending on how many games the Spain international plays during the 2014-15 season, the club said on their website.
There is also a buyout clause worth 150 million euros, up from 80 million in his previous deal, they added.
A product of the club's youth programme, the 22-year-old is an important part of Pep Guardiola's much-praised team.
His ball-winning skills, distribution and the protection he gives playmaker Xavi also served Spain well at last year's World Cup in South Africa when they won the trophy for the first time.
"This is the best way to start the year and great news for everyone," Busquets told Barca TV.
"I am still very young and I hope to have a career filled with successes," he added.