Van Baarle joined what was then Team Sky at the start of the 2018 season, having previously spent four years at Cannondale-Drapac (now EF Education First). He won the Dutch time trial championships in his first year at Sky, and this season won the overall Herald Sun Tour title in Australia at the start of the season before winning a stage at the Critérium du Dauphiné in June, following Sky's transition to become Team Ineos.
The latter win ensured selection to the team's eight-man squad for the Tour de France, where Van Baarle helped Egan Bernal win the overall title.
"I'm super happy to sign a new contract with the team," Van Baarle said on the Team Ineos website. "I've become a better bike rider here, and I want to see the progress continue. Three years gives me confidence, and it also shows that the team has confidence in me as well.
"This year, with Egan winning the Tour, it was a dream," he added. "Coming into this team, it's what I was aiming for – to be part of the Tour team and hopefully winning. With first and second [places, with Geraint Thomas], it was a really nice three weeks.
"Going into the Tour, I knew I wanted to be there for the guys for as long as possible on the climbs. That's what I did, and I was pretty happy with that," said Van Baarle.
He added that he felt he'd shown particular improvement over the past couple of seasons, since joining the team, and pointed to a moment in particular when he felt as though things really changed for him.
"The real switch actually came when I went to an altitude camp in May last year," explained Van Baarle. "I was there with Geraint, and I learned so much from that camp. Since then, I feel like a better bike rider. We trained really hard and we ate really well. That was something which basically changed my career."
Looking ahead, he said that he wanted to keep improving at the one-day Classics, where he hopes to become a contender, while also being ready to ride for the team at three-week races.
"I hope I can be on the podium in a big Classic," he said. "I also want to be really important in the Grand Tours, helping for even longer than I did this year. That's where I see myself in the next three years."
Team coach Tim Kerrison added that Van Baarle's versatility as a rider – along with his potential – is what helped to ensure that the Dutch rider will stay with the team long-term.
"Dylan has been a great addition to our team," said Kerrison. "We always recognised his potential, and over the last two years his strong work ethic has seen him develop into one of the most versatile riders in the peloton, showing his strength across one-day races, time trialling and stage races.
"He has quickly developed into a key support rider in our Tour de France team, who can be relied on to deliver in all terrain at the highest level. We are sure that Dylan's best years are still ahead of him, and look forward to working together to help him achieve his very ambitious goals," he said.