Matthews was OGE's face of the Giro d'Italia this year, wearing the overall leader's pink jersey for six stages, as well as winning stage six with the 'maglia rosa' on his back.
The former Under 23 world road race champion has thrived at OGE since joining from Rabobank before the 2013 season, having claimed three stage wins at grand tours, as well as an overall victory at the Vuelta a La Rioja and the points classification title at the Tour of Slovenia this year.
"For me this is the perfect team and I wouldn't think of going anywhere else," Matthews said in a statement posted on OGE's website on Saturday.
"Joining the team in 2012 was a huge experience and ever since then my progression in professional cycling has gone a lot higher.
"I feel really comfortable in the team and my results are speaking for that."
Matthews unluckily missed this year's Tour de France as he crashed in training just days before the race began in Yorkshire but with the Vuelta set to begin on Saturday, the 23-year-old believes there is still plenty to look forward to in 2014.
The Canberra-born cyclist won two stages at the Vuelta last year and held the points jersey for two stages.
"I have still got a big year ahead of me now but I am looking forward to the next two years and hopefully try to step it up again with more wins," Matthews said.
OGE sporting director Matt White was thrilled to secure Matthews' signature and predicted even more success for the sprinter.
"Michael is a winner and an extraordinary talent on the bike," White said.
"This year, he's accomplished a lot and I think we're yet to see the full scope of what he's capable of.
"What we saw at the Giro is just another example of how he continues to take massive steps in his career on this team. He's a very serious athlete and with the support we can give him, he will be able to make the most of his efforts."