The contract with the Crucible was due to expire in 2027, but the World Snooker Tour secured its future at the venue with a new long-term agreement with Sheffield City Council.
The deal will also see a renovation project to increase its current 980-seat capacity by 500.
Investment will cost £45 million with £35m from national and local government and a further £10m through the private sector.
"For over 50 years I have been promoting sport all over the world, but no venue on this planet means more to me than the Crucible," said Barry Hearn, the president of Matchroom Sport.
"I am so happy that after a long period of meetings and discussions we have finally agreed a deal to stage the World Championship at its historic home – the Crucible.
"My thanks must go to Sheffield City Council for all of their hard work in ensuring this great tournament remains at its spiritual home."
Snooker's top competition has been held at the Crucible since 1977 and will celebrate its 50th anniversary at the venue next year.
This year's event begins on April 18th until May 4th, with China's Zhao Xintong set to defend his title.