The announcement by Italian soccer federation president Carlo Tavecchio was expected to arrive early this week, with Conte being linked to Premier League club Chelsea.
There was no mention of the Premier League club.
Conte took over as Italy coach in 2014 after Cesare Prandelli resigned following a first-round exit at the World Cup in Brazil.
Conte steered Italy to first place in its qualifying group for the European Championship, earning a spot in the final tournament with a game to spare.
Chelsea's Conte taking season 'step by step' ahead of Man City...