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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As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?
Being an amiable guy is good for you and Jurgen Klopp is living proof.