He is the latest player to sign a new contract at the Ospreys, following on from centre Owen Watkin, lock Adam Beard, wing Keelan Giles, fullback Cai Evans and props Tom Botha and Rhodri Jones.
Tipuric, 30, will also be joined by returning Ospreys scrum-half Rhys Webb, who is returning to Wales from France.
"This is my home region and where it all started for me and I wanted to stay," said Tipuric.
"I watched the club as a supporter and to get the chance to play for them was always a big thing for me.
"I used to come and watch the Ospreys with my family and friends and I have grown up here.
"This has been a difficult season, nobody would deny that, but now hopefully we can start building for the future.
"My friends are here, my family are here, and I want to see the Ospreys get back to where they used to be.
"We now have a clear path for the future and I want to play my part and be part of that journey.
"It's always flattering to know people want you and value what you do. It's a nice boost but there is a job to do here."
Andrew Millward, the Ospreys Managing Director, welcomed the news of Tipuric re-signing for the region.
"I cannot say how pleased we are that Justin is staying with the Ospreys," said Millward.
"He had plenty of options on the table but he decided to remain with his home region, the Ospreys.
"He is an iconic Osprey. People around the world regard him as one of the best players in the world, and any side in the world would love to have him in their team.
"The fact that he has decided to remain an Osprey is a massive statement of intent for all of us at the Ospreys -- players, coaches, staff, and supporters."