The Melbourne-based team ended the year on a high recently with Reynolds holding off a determined Jamie Whincup to claim third in the final race of the year at Sydney Olympic Park.
Penrite joined the team in the latter half of 2015 and have enjoyed a strong presence in the Championship ever since.
“We are excited to be partnering with David Reynolds and the team for 2017,” Penrite Oil's general manager – sales & marketing, Toby Dymond, said.
“This year was a challenge for everyone but results later in the year proved the car has genuine speed,” Dymond said.
Reynolds joined Erebus Motorsport at the start of 2016 before realising his best result for the squad in Sydney.
“I am really excited to tackle next year,” Reynolds said.
“We've had great momentum going the last few rounds and if we keep playing it smart, there's no reason we can't be at the front straight away next season.”
Team owner Betty Klimenko is also excited about Penrite's continued involvement with the team.
“Innovation and development are what both our businesses are about,” Klimenko said.
“I feel very fortunate to have Penrite extend their partnership.”