The 24-year-old was in impressive form for his German club during the 2021-22 campaign, scoring 35 goals and registering 19 assists in 50 appearances in all competitions.
In the Bundesliga, he netted 20 times and provided 14 assists in 33 appearances, while he scored seven goals and registered two assists in six Champions League appearances.
However, Nkunku has agreed a two-year contract extension with his German club until 2026, and there is a release clause in the agreement of €60m (£51.6m).
The buy-out fee can be activated next summer, and it is widely thought that there will be a scramble for his services ahead of the 2023-24 campaign, with Man United and Arsenal potentially both involved.
"I'm pleased to continue wearing the RB Leipzig shirt. After our great achievement in winning the DFB-Pokal, it remained clear that my story here isn't over yet – we want more!" Nkunku told his club's official website.
"I was really impressed with the club's efforts to keep me, so a big thanks goes to those responsible for the trust in me and especially to Oliver Mintzlaff, with whom I was always in close contact.
"RB Leipzig have made a name for themselves on the international stage in recent years and have shown time and again that we can compete for titles. We want to build on that going forward and go one step further."
Meanwhile, Leipzig technical director Christopher Vivell said that the club are "proud and happy" to be able to keep hold of "one of the best players in the world".
"We're proud and happy to have been able to keep hold of one of the best players in the world at the moment. There are only a few players who can match the speed, flair and mentality that Christo possesses," said Vivell.
"In addition to that comes his incredible goal involvements this season. Christo has developed into one of the Bundesliga's best players at Leipzig and has also become a regular with the France national team. This success story is something that we want to continue writing together."
Nkunku made the move to Leipzig from Paris Saint-Germain in July 2019, and he has represented the Bundesliga outfit on 134 occasions, contributing 47 goals and 46 assists in the process.
The attacker only made his international debut for France in March but has played in their last six games and is seemingly in a strong position to secure a spot in the squad for the 2022 World Cup.
Nkunku is yet to find the back of the net for his country, although he provided assists in their UEFA Nations League fixtures with Denmark and Austria earlier this month. body check tags ::