Car maker Volvo has agreed to extend its sponsorship agreement with the China Golf Association to ensure the China Open is played until at least 2015.
The two sides also announced the prize money for next year's tournament will increase by 200,000 dollars to two million dollars. The event will be held in Shanghai rather than Beijing, where it was played last week.
"We are very excited with the future of this great championship and we are committed to stay the course and make the Open Championship of China a major event in world golf over the next decade," said Volvo Event Management president Mel Pyatt.
He said prize money would continue to rise and plans were afoot to introduce international pre-qualifying. The tournament, won last week by India's Jeev Milkha Singh, will return to Beijing in 2008 ahead of the Olympics.