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The confirmation ends months of uncertainty for the 36-year-old whose 2015 contract ended at November's final round in Wales.
Citroën Racing team principal Yves Matton confirmed that Meeke will play a lead role in the development of an all-new World Rally Car in 2016 and will contest a number of WRC rallies with a private team before the squad's return to top-level competition in 2017.
“In terms of our new programme, above all else we wanted an experienced, top-level driver, with sound technical knowledge. Kris was undoubtedly the best choice and we are delighted that he has decided to stay with us," said Matton.
“We have a lot of shared history, with two seasons in the JWRC in the 2000s and then the last couple of years with the DS 3 WRC. However, the most important part of his career is ahead of him, with three seasons to develop and achieve success in the successor to the Xsara, C4 and DS 3 WRC!
"In 2016, the test programme will be the priority for Kris from April, when initial testing of the new car is set to begin. He will nonetheless keep his hand in as regards racing by taking part in several rounds of the World Championship. Initial details of this private programme will be revealed shortly.”
Meeke has a long association with Citroën that stretches back to 2005, when he contested the Junior WRC in a C2 S1600. He joined the Total Abu Dhabi World Rally Team at the end of 2013 and claimed his first WRC victory earlier this year in Argentina.
“Various options were available to me to pursue my career, but I chose to stay with Citroën Racing to reap the rewards of the work done over the last two years or more,” said Meeke. “It’s also a way of thanking the team for the faith they have shown in me. We now know each other very well and this understanding will be essential in developing the new car successfully.
"I’m very excited about everything that lies ahead in the next few months. I began my career in motorsport as a design engineer so although I can’t wait to get into the car, I’ll be following every stage of the design and assembly of the first car with great interest.
"I’m also very excited about the new FIA regulations, which look set to deliver more powerful and more spectacular cars! Obviously, all of this work is geared towards me being able to fight for more wins and for the world title," he added.