Lewis Hamilton is expected to sign a new contract at Mercedes to take him beyond 2018 and the German team would be unlikely to put Hamilton and Verstappen together because of the likelihood of tension in the team.
"Then giving me my start in Formula One when I was just 17, and then the opportunity to race with Red Bull Racing where I had such a dream start with this team".
Verstappen's previous contract ran until the end of 2019 but reportedly contained a clause allowing him to leave at the end of next season. He also won in Malaysia earlier this month, a day after his birthday. "Of course we had our ups and downs this year but as you can see they've been working very hard to get better and again today it showed that we are very competitive and I really enjoy it here with the team and I think that's also really important and that's why I chose to extend".
Verstappen was promoted from Red Bull's sister team Toro Rosso just four Grands Prix into the 2016 season.
"For Max, the positive is he and I guess his team, his management and his dad [Jos], feel confident with Red Bull, so it's positive for us for next year and it gives the team confidence".
Red Bull's other driver is 28-year-old Australian Daniel Ricciardo, who has also been frequently linked in the past to Ferrari.
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"It was a great moment for the whole team to see him put the frustrations of this season behind him in taking that fantastic victory in Malaysia. I?m looking forward to accomplishing more with this team".
"We had a phenomenal start together in Spain and Max has only pushed on from there".
"He is pure racer, with an undeniable talent at the wheel and a rare instinct for what it takes to compete consistently at this level", said Horner.
Both Verstappen and Ricciardo, also a race victor this season, already had contracts for 2018 but the focus will now be on the Australian's next move.
Of course, we know it's been a challenging year for us but we definitely improved a lot especially towards the end of the season now I think we are really competitive even with the top speed losses that we still have, I think we built a great vehicle and I trust the guys, I believe in the guys and they believe in me.