"Gigi is a great player, one of Italy's top three goalkeepers and his renewal is a great pleasure for us," said Parma president Kyle Krause.
"His passion and dedication to Parma and the city is evident every time you see him."
The Italian football icon will therefore play at professional level at least until he is 46 years old.
Buffon returned to Parma from Juventus last summer, two decades after leaving the club where he started his professional career in 1995.
He has a record 176 national team caps and also holds the record for most Serie A matches played with 657 since making his debut for Parma in 1995 aged 17.
He won 27 trophies during his glorious career, including the 2006 World Cup and the 1999 UEFA Cup with Parma.
He was also French champion with PSG in 2018/2019 before returning to Juve, a club with which he won ten Serie A titles and five Italian Cups, but never won the Champions League after. having lost the finals with the Turinese in 2003, 2015 and 2017.
Parma, one of Italy's top clubs in the 1990s, were relegated to Italy's second tier at the end of last season after finishing last in Serie A. The club is currently 13th in Serie B .
© 2022 AFP