Benayoun joined the Hammers in 2005.
He told West Ham’s website: “From the first moment I arrived, West Ham felt like home to me. We have the best supporters in England.
“The chairman is ambitious and I want to thank him because the negotiations were very quick. He and the manager showed me they wanted me to stay.”
Chairman Eggert Magnusson said: “We are very ambitious and Yossi is a big part of our plans. I’m very pleased to have agreed terms to keep him at the Club for five more years.
“We are looking forward to bringing in exciting new signings but we must also make sure we keep hold of the hugely talented players we already have.”