It comes as no surprise after AlphaTauri team boss Franz Tost stated that the Frenchman will remain with the team beyond this year at the Canadian Grand Prix.
With Sergio Perez signing a new deal with Red Bull, Gasly's options outside of AlphaTauri are very limited.
Gasly first joined the team during their days as Toro Rosso in 2017.
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Following a solid 2018 campaign, Gasly was drafted in as Daniel Ricciardo's replacement for the following season.
He struggled considerably alongside Max Verstappen, ultimately being dropped halfway through the year in favour of Alexander Albon.
Gasly took his maiden F1 victory at the 2020 Italian GP before following it up with an impressive campaign in 2021.
Speaking of the news, Gasly said: “I have been with this team for five years now and I am proud of the journey we’ve been through together and the progress we have made.
“I’m happy to remain with my Scuderia AlphaTauri team. This year’s new regulations have created new challenges for us and being able to plan our development with the team for the next 18 months is a good working basis for the future.”
The AlphaTauri boss described Gasly as 'one of the best and most competitive drivers in F1'.
“We are really pleased to confirm that Pierre stays with us in 2023,” Tost added. “He is definitely in the group of the best and most competitive drivers in F1 and has proven his abilities during all the time he has spent with us.
“Undoubtedly, Pierre can play a major role in the team having a successful season next year and it will be down to us to provide him with a competitive car, so that he can continue to deliver excellent results.”