The new deal will keep Insigne at Napoli until the summer of 2018.
Napoli president Aurelio De Laurentiis confirmed the new deal on his Twitter account.
He tweeted: “This morning I met Lorenzo Insigne and we extended the contract for five years. Since this season Lorenzo will earn 700,000 Euros plus bonus.
“I wish ‘Lorenzinho’ a great career in Napoli.”
Insigne turned down the chance to join Premier League side Sunderland earlier this summer.
What is your opinion? Feel free to discuss the article under. You have to comment by using your Facebook profile. Be fair and have respect for other people and opinions!
Chelsea have struggled to build momentum in the opening stages of the campaign and are currently looking over their shoulders at the relegation zone.
Who of Europe’s top strikers will move to England this summer?