Jakobsen made his comeback to racing in the spring following a life-threatening crash at last season's Tour de Pologne. He turned professional with Patrick Lefevere's team in 2018 and will now extend his stay to a sixth year.
"I'm so satisfied to continue with the Wolfpack," Jakobsen said.
"I'd like to thank Patrick, the staff and all the sponsors for their fantastic support. I'm looking forward to the upcoming two years, to get back to winning races with my teammates, step by step.
"Right now, I'm in Livigno, preparing for my next goals. I'm grateful for where I am now and for having such an amazing team around me, a team that supported and helped me develop since turning pro in 2018, and I'll continue to work hard to achieve my goals."
After months of rehabilitation, 24-year-old Jakobsen made his return to the peloton at the Tour of Turkey in April after sustaining horrific facial injuries after crashing into the barriers after colliding with Dylan Groenewegen in Poland last year.
He helped teammate Mark Cavendish win four stages at the race and has since competed at the Volta ao Algarve, Critérium du Dauphiné, and the Dutch National Championships.
"To see where Fabio comes from, it's just a miracle," said Lefevere.
"Step by step he's making progress and we're super happy to have him with us for two more years. Fabio has a lot of talent, has skills and ambition, and we'll continue to work towards the next races together.
"He's been through a lot, but he always had the team behind him and that will never change. In the past he beat some of the fastest sprinters in the world in some of the biggest races, and we are confident that one day he'll be able to raise his hands again."
Jakobsen will next race at the Tour de Wallonie at the end of July and will make his Grand Tour return at the Vuelta a España, which kicks off in Burgos on August 14.
Aside from Jakobsen, Deceuninck-QuickStep's sprinting lineup is largely up in the air for next season, with the contracts of both Davide Ballerini and Álvaro Hodeg's set to expire at the end of the season.
Mark Cavendish, who is currently on three Tour de France stage wins and counting this year, is also out of contract at the end of the year, while reigning Tour green jersey Sam Bennett is leaving the team for 2022. Bennett is expected to return to Bora-Hansgrohe despite his previous butter split from the German team.
Cavendish is due to sit down with Lefevere after the Tour de France but is likely to stay with Deceuninck-QuickStep for another season and share sprinting responsibilities with Jakobsen.
We are happy to announce that @FabioJakobsen has signed a new contract with the team, which will see him ride for #TheWolfpack until at least the end of 2023!https://t.co/Rh99emZFmC pic.twitter.com/C0O2zEYVxEJuly 9, 2021
Daniel joined Cyclingnews as staff writer in 2019 after working freelance at pretty much everywhere in cycling media for seven years.
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