The agreement was initially signed following the controversial Israel-Egypt Peace Treaty of 1979.
The deal led to Israel returning the Sinai peninsula and oilfields to Egypt.
US and Israeli officials said the renewal was aimed at ensuring Israel had sufficient supplies.
According to the 10-year agreement, the US will supply oil to Tel Aviv in case imports are halted, and pledges to offer safe means to transport fuel to Israel.
A spokesperson for the US embassy in Tel Aviv said the agreement was an example of the friendly relations between the two countries.