The New York company's stock at last check traded higher at $6.62, up 1.5%.
The news was first reported by Stern during his live show on Tuesday morning, the company said.
"Howard's home has been SiriusXM and it will remain that way," Chief Executive Jim Meyer said in a statement.
"But we've expanded SiriusXM in recent years, too, and we are excited about finding the right ways that select content from Howard can find audiences on additional platforms."
Sirius XM's exclusive rights to Stern's audio and video archives will continue for an additional seven years, the company said.
Stern’s contract with Sirius XM is set to expire at the end of December. Stern and the company didn't disclose terms of the new deal.
"Going to SiriusXM liberated me. I felt like Tina Turner freeing myself from Ike," said Stern.
"And despite the naysayers and the ridicule, we have persevered and are thriving. I've been proven right about satellite radio over and over again.
"With this contract renewal, I can't wait to see what else I'll be right about. Certainly, I have a lot more to say about Metamucil crackers and stepmom porn. Plus, now that I can work from home, I simply don't have an excuse to quit," Stern added.
In October, Bloomberg had reported that Stern was close to renewing his contract with Sirius XM for $120 million for a period of three years.
Stern's previous five-year contracts, which cover production and staff, topped out at roughly $80 million to $100 million, Bloomberg had reported.
Stern helped draw millions of listeners to satellite radio when he joined Sirius back in 2005.