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Capirossi, a former 125 and 250cc world champion, has been with the team since 2003 and won this month's Czech Grand Prix. He is fifth in the championship.
"I feel part of the Ducati family," said the 33-year-old.
"Ducati's dream is also mine. We work well together and together we are aiming to complete the project, bring it to its climax and fight for the world title with an Italian bike."