"We are all delighted that we have been able to reach an agreement to keep Jarno on board for at least one more year with our team," said team owner Tony Fernandes in a statement.
"He has shown in qualifying in Monza just how much pace he has and how he can wring every last drop of performance out of his car," added the Malaysian.
Trulli, 37, qualified 19th on the 24 car grid on Saturday, ahead of Finnish team mate Heikki Kovalainen [ Images ] who is also expected to stay at Team Lotus next year.
"Today's announcement will give us the benefit of his experience and knowledge into 2012, another very important year in the growth of our team," said Fernandes.
Trulli has one grand prix win to his name, with Renault [ Images ] in 2004, and made his F1 debut with Minardi in 1997. Team Lotus, who entered the sport last year, have yet to score a point.