Gibbs-White had two years left on his previous deal after joining Forest from Wolves in a move worth up to £42.5m in August 2022.
He has scored 18 goals and provided 28 assists in 118 games for the Reds, helping the club finish seventh last season and qualify for Europe.
“I’ve felt at home at Forest from the moment I arrived,” said Gibbs-White. “The support from the fans, my team-mates, and everyone around the club has been unbelievable.
“I believe in what we’re building here – and with the backing of [owner] Mr Marinakis and the enormous ambition he has, I want to be part of making something special. I’m excited for what’s to come.”
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