The 27-year-old 7-footer from Finland was named the NBA's 2022-23 season's Most Improved Player, when he averaged a career-high 25.6 points and 8.6 rebounds a game.
"I'm excited to get this extension done," Markkanen said in a video posted on the Jazz's X account. "I'm ready to get back to work and build with this franchise. You guys deserve to win. Go Jazz."
Markkanen's deal, according to ESPN, is worth $238 million. He had one year and $18 million remaining on his contract but will get $24 million more for next season and $196 million over four years after that.
The terms also ensure Markkanen cannot be traded until after next season.
Markkanen averaged 23.2 points and 8.2 rebounds a game last season for the Jazz, who went 31-51 and missed the playoffs for the second year in a row.
The Jazz have not reached the NBA Finals since losing to the Michael Jordan-led Chicago Bulls in 1998.
Markkanen, who spent four seasons with Chicago and one campaign with Cleveland, has averaged 18.1 points and 7.3 rebounds over seven career NBA seasons.
