The Margaret River Pro will retain its Championship Tour status following a deal between the World Surf League (WSL) and the State Government.
The deal secures the event on the tour until at least 2021.
Some of the biggest names in surfing have competed at past events, including Kelly Slater, John John Florence, Mick Fanning and Stephanie Gilmore.
Tourism Minister Paul Papalia said the new deal will also include opportunities to showcase other parts of Western Australia's coastline, through video content during the event's broadcast.
"Margaret River is one of Western Australia's key tourist destinations, known around the world for magnificent surf, its premium food and wine, and its stunning natural assets including majestic forests and caves," Mr Papalia said.
"The Margaret River Pro not only injects money and creates jobs for the local economy, but it gives us the opportunity to showcase the region and the State to a global audience."
Last year's event was called off after two non-fatal shark attacks in the area.
The State Government has sponsored the event for over 30 years.