The Briton claimed the title with Kawasaki in 2013 and has a healthy 44-point lead in the current campaign with just three rounds of the season remaining.
Sykes - who has 22 career World Superbike victories - is thrilled to be extending his lengthy association with the manufacturer.
"I am very excited to re-sign and the decision was quite easy," he said.
"I am looking forward to another two years with a great manufacturer. Kawasaki and I already have quite a good history. This is my fifth year as a rider with the brand.
"I have put so much work into the bike I would not want to give my baby to someone else. We have been in discussion for a while but we have had really good success in recent years and continuing our relationship gives us an opportunity to take the story forward again.
"I sat at home and went through the pros and cons, like you do with a lot of things in life, and the pros for re-signing were almost endless.
"I am very happy because Kawasaki and I have a high level of mutual respect and trust. The team is doing a great job so it is great to have two more years of continuity.
"I am relaxed now I know that I am moving on again with a great brand and a great team around me."
Sykes has also achieved 46 podiums and set 21 fastest laps during his time with Kawasaki.