Ibrahimovic, 37, signed a one-year contract with LA Galaxy in the summer and he scored 22 goals in 27 games leading to a nomination for the MLS MVP award.
He was heavily linked with a return to former side AC Milan but the Galaxy have confirmed that he will be staying in LA, something Ibrahimovic hinted at a day before.
“We are very pleased to sign Zlatan to a new contract that will see him return for the 2019 season,” said new LA Galaxy General Manager Dennis te Kloese.
“He showed his value last season and we look forward to him representing our club next year. With Zlatan returning, we will continue to improve our team in advance of the season.”
The decision to make Ibrahimovic a designated player, which will net him a substantial pay-rise, also raises a potential headache for the Galaxy.
Under MLS rules clubs are only allowed to have three designnated players so the club will have to sell one of Romain Alessandrini, Giovanni dos Santos or Jonathan dos Santos.