The 33-year-old, whose international future has been the subject of much speculation over the past week, will lead the Black Caps in their long-awaited home and away series against Australia this summer, as well as being available for the World T20 in India in March.
McCullum will, however, sit out the upcoming tour of Zimbabwe and South Africa after an intense period of cricket dating back to World Cup.
The re-signing means he's is on track to play his 100th consecutive test since debut for the Black Caps in the home series against Australia after Christmas.
Only South African AB de Villiers, who has played 96 consecutive tests since making his debut can beat him to what would be a record.
The annual contracting process will be completed next week and the list of Black Caps players being offered contracts will be announced on Wednesday.
McCullum said he was excited about what lay ahead for the Black Caps.
"It's a critical time for the team," he said.
"We've had a very good past 18 months but we've got some real challenges ahead of us and we need to keep making progress.
"This is a young, emerging side with some very big series on the horizon and it's a really exciting time to be involved."
Meanwhile, McCullum has agreed a three-year deal with Australian Big Bash team the Brisbane Heat, currently coached by fellow Kiwi Daniel Vettori.
A member of the Heat in the inaugural Big Bash series, McCullum will return to the Brisbane franchise this summer and will be available for all games - apart from any that clash with Black Caps internationals.
"I'm certainly looking forward to linking up with the Heat again," said McCullum.
"Apart from Brett Lee breaking my nose in the first ever game, I enjoyed being part of the inaugural year when it was all a bit unknown and there was a lot of excitement and buzz about the BBL.
"The competition has really developed quickly since then and from what I have seen, the standard is right up there with the best in the world."
