LaVine, 27, was an all-star in each of his last two seasons.
Last season, he averaged 24.4 points, 4.5 rebounds and 4.6 assists while shooting 47.6 per cent from the field and 38.9 per cent from three-point range.
LaVine was acquired by the Bulls in the Jimmy Butler trade with the Minnesota Timberwolves in 2017. This deal will keep him in Chicago until 2027-28 should he play out the entirety of it in the Windy City.
The Bulls finished 46-36 last season after largely being led by LaVine, DeMar DeRozan and Nikola Vucevic. They ultimately fell in the first round to the Milwaukee Bucks.