The multi-format batter, who has scored over 12,000 First Class runs in his career to date, will remain at the club until at least October 2025.
The former Scarborough CC ace, who also played for Scarborough FC as a youngster, top-scored with 69 from just 38 balls in Yorkshire Vikings' 31-run home loss at leaders Birmingham Bears in the Vitality T20 Blast on Friday night.
As the English T20 record holder for the most runs in a T20 innings, having made 161 against Northants Steelbacks in 2017, Lyth will be hoping to continue dominating across all forms of the game.
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Left-handed opener Lyth said: “I’m delighted to sign a contract extension with Yorkshire and am excited to be part of this team for at least the next three years.
“Yorkshire is my home club and I take great pride in representing them.
“With such a talented squad I believe we can really challenge for silverware over the next few years and would love to secure another trophy in front of our fantastic supporters.
“On a personal level, I’ve been pleased with how my batting has gone over the last few years and believe I’ve got a lot more runs to score across all formats.”
Yorkshire CCC’s Interim Managing Director of Cricket Darren Gough said: “It’s fantastic to have Adam Lyth contracted with us for another three years.
“He was a young player at Yorkshire when I was in the final few years of my playing career and I remember thinking what a talent he was back then.
“It’s fair to say he’s gone on to have a marvellous career so far, proving himself to be one of the best multi-format batters in the country and his performances this year have shown that he’s still got a lot of runs left in the tank.
“His impact on the team as a senior player is so important and I’m confident he will play his part in helping us to bring some silverware back to Headingley in the next few years.”