The club captain will remain at San Siro until the summer of 2019.
The defender joined the Milan giants from Genoa in January 2011 and has gone on to become a key player.
Ranocchia has racked up 156 appearances for the Serie A outfit and looks set to make many more after agreeing a new deal.
Inter published a short statement on their website revealing that the centre-back's new contract will run until June 30, 2019.
Goalkeper Juan Pablo Carrizo also signed a new contract on Tuesday, extending his stay for a further two years.
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