The Briton, fresh from double arm surgery, ended speculation over his future at the World Ducati Week 2014 event at Misano. He will continue alongside Italy's Andrea Dovizioso, onboard for at least two more seasons.
"Andrea is having a great season but we need to keep working hard in the second half of the year," explained Crutchlow, who sits 14th in the standings after the opening nine races, 10 places behind Dovizioso.
"I am certain that they are working hard in the factory in Italy. We hope to keep getting closer to the front guys."
Paolo Ciabatti, Ducati's MotoGP Project Director, added that Andrea Iannone is also likely to sign a new deal, having impressed during in the opening half of his second season with the satellite Pramac squad.
"Iannone has done even better than we expected and we want him to stay with us," said Ciabatti.
"We want to offer him better technical support and next week we should be able to decide how to do it."