The 23-year-old, who made his first-class debut in 2015, will now remain at Trent Bridge until the end of the 2021 campaign.
Carter impressed during this summer’s Vitality Blast, taking 14 wickets as the Outlaws reached Finals Day.
“There’s no better place for me to develop my game than at Trent Bridge with Notts,” he told the club website.
“With promotion to aim for in the Championship – and also for our white-ball side to achieve what it’s capable of by winning a trophy – there’s loads for us to achieve here in 2020 and beyond.”
Nottinghamshire head coach Peter Moores said: “Matt is proving himself to be a really exciting player.
“He became a trusted, go to bowler for us last summer and he earned that trust from his captain on merit with his performances.”
The England World Cup side won Team of the Year and claimed Sporting Moment of the Year.
Marnus on day one, Mitchell on day two.
No Joe Root in England’s T20 squad for South Africa…
Somerset “disappointed” but won’t launch appeal.
All the evidence points to yes.
This might be the best reason tbh.
Bob Willis’ second best day at Headingley was also quite good.
Why do England hate Ben Foakes?