Whitby-born left-handed batsman Lyth, 30, who has amassed 22 first-class hundreds since making his debut in May 2007, expressed his joy at agreeing fresh terms with his home county – and is targeting some silverware in the next few seasons.
Lyth, said: “I am absolutely delighted. I have been at the club since I was 11 years old and I was absolutely thrilled to sign an extension.
“I could not see myself playing anywhere else to be honest. It is a great club with a fantastic history and hopefully we can put some more trophies in the cabinet over the next few years.
“Hopefully, I can go and win some more trophies with this great club.
“I have known most of these guys all my career and they are my best mates. I want to play for as long as I can with this fantastic group of players. We have got a great coaching staff and hopefully we are in for a good year.
“We were massively below par last year as a group and we want to prove to all supporters and everyone connected with the club that we are a fantastic team with some great players.”