With Sergio Perez signing a new deal at Red Bull alongside Max Verstappen, Tsunoda saw his slim chances of being promoted to the main team vanish, and the Japanese driver was widely expected to remain at RB instead.
The Anglo-Italian outfit has now confirmed it has taken up the option to keep the long-time Red Bull junior and Honda protege at the squad for the 2025 season, which will be his fifth with the team since making his F1 debut in 2021.
"I'm very happy to be staying with RB and it's a good feeling to have my future decided so early in the year," 24-year-old Tsunoda said.
"For that, I want to thank everyone at Red Bull and Honda who have played such an important role in my career and will continue to do so.
"It's great to know that everyone appreciates all the hard work I have put in and that the team believes I can help it move further up the grid. We have already made clear progress this season and that really motivates me to always give my best."
Tsunoda has been one of the standout drivers in 2024 as he matured into a steady performer to match his natural turn of speed.
Thus far he has scored 19 points to hold 10th in the drivers' championship, almost single-handedly keeping RB in sixth position of the constructors' standings.
While team-mate Daniel Ricciardo's long-term future remains unclear, as Red Bull also has reserve driver Liam Lawson waiting in the wings, retaining Tsunoda was a no-brainer for team boss Laurent Mekies.
"I watched Yuki's progress in Formula 1 with interest even before I returned to Faenza and it's been impressive, year after year," Mekies said.
"The step up he has made this year is simply phenomenal, and he keeps surprising us all, race after race.
"There's no doubting his natural speed to which he has now added a much more mature approach and this combination makes him a very quick and consistent performer, and a great team player."
Team CEO Peter Bayer added: "Yuki is a graduate of both the Red Bull and Honda junior driver programmes and it's thanks to a good job from all parties that he's been able to reach his current level of performance.
"He is a valuable asset on and off the race track, as his engaging nature has made him very popular with fans around the world. We are excited that he is staying with us."
