Pedrosa won 31 MotoGP races in a career that spanned 2006 to 2018, all of which with Honda, as the Spaniard finished runner-up in the standings on three occasions.
Considered one of the greatest riders never to win the MotoGP title, Pedrosa retired from full-time competition at the end of the 2018 season and duly signed a testing contract with KTM.
Pedrosa has since been an instrumental figure in the evolution of the RC16, helping mould it into a race winner.
The 37-year-old has made several wildcard appearances since 2021 with KTM, most recently at this year’s Spanish Grand Prix where he topped FP1, finished sixth in the sprint and seventh in Sunday’s main race.
Pedrosa will make another wildcard appearance at the San Marino GP next week.
“Very happy and very grateful to continue with KTM because the last few years have been very productive,” Pedrosa said.
“We’ve made gradual progress but always positive and the riders have come closer and closer to the front and have taken some good results.
“We’ll try to continue this path with the bike because it seems to be even more essential now in MotoGP.
“I’m really happy to be part of the team and I’m looking forward to Misano, even if Jerez was really special for me with all the fans!”
KTM’s motorsport director Pit Beirer added: “The feedback and all the laps Dani have given us with the test team has helped make our RC16 what it is today: a bike that is one of the fastest on the track and one of the best to have in a fight.
“He knows our program, our technicians and our philosophy very well after five years together and the work is just as important as ever.
“We’re delighted to keep him in the structure and for Dani to continue helping us achieve our MotoGP goals.”
Pedrosa’s wildcard at Misano next week will mark his third outing on the RC16 in a race setting, and is made more important by the fact there is a test day on the Monday after the San Marino GP.