The 52-year-old has been in the role since 2010, when he replaced Txiki Begiristain, and also enjoyed a spell playing for the club as a goalkeeper.
Zubizarreta is expected to put pen to paper in the coming days.
A statement on the club's webiste read: "Andoni Zubizarreta will continue as sporting director until the end of the 2015-16 season after terms were agreed for the extension of his contract on Thursday November 7.
"His present contract is due to expire at the end of June 2014, but he'll now be staying on an additional two years until June 30, 2016."
Zubizarreta is in his fourth season as sporting director at Camp Nou and has been partly responsible for securing the signatures of the likes of Cesc Fabregas, Alexis Sanchez and Jordi Alba.
He was also involved in the decision to name Tito Vilanova as Pep Guardiola's replacement as first-team manager, and subsequently the appointment of Gerardo Martino in the close-season after Vilanova resigned from the post for health reasons.
