The announcement was made by Tailwind Sports, the marketing agency specialising in cycling and motorsports that owns and manages the only U.S.-based cycling team to win the Tour de France.
"We are honoured and excited that this extension will enable us to continue to build an already successful programme into a true dynasty in sports," said 1984 Olympic Games match sprint gold medallist Mark Gorksi, the chief executive officer of Tailwind Sports and general manager of the U.S. Postal Service team.
Armstrong, of Austin, Texas, surprisingly won the 1999 Tour de France after recovering from testicular, lung, stomach and brain cancer. He successfully defended his title last year.
The extension of contract will continue through the 2004 season. Financial terms of the contract were not announced.
In addition to its cycling division, Tailwind Sports has a motorsports division that provides consulting and management services in NASCAR, CART and Formula One racing.
Tailwind Sports recently also announced its role as a co-producer of a new U.S. cycling event, the San Francisco Grand Prix, a one-day road race on September 9 in San Francisco.
Armstrong, who last Saturday finished second to Dutchman Erik Dekker in the Amstel Gold Race, a World Cup event in The Netherlands, will compete in the event as one of his only two U.S. road race appearances this year.
Armstrong, ranked number two in the world, is scheduled to defend his Tour de France crown starting on July 7 in Dunkirk.
The United States Postal Service has signed a three-year contract extension to remain the title sponsor of the professional cycling team led by double Tour de France winner Lance Armstrong.
