The new deal will keep the 31-year-old at La Rosaleda until the summer of 2017.
Caballero is rated as one of the best goalkeepers in La Liga and has become a key player for Malaga.
The Argentinian goalkeeper joined Malaga from Elche in 2011.
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.