Roland Garros will continue to host the French Open after the country's tennis officials rejected a move to a different part of the capital Paris.
Three groups had made bids to host the annual clay-court tournament, one of the four Grand Slams on offer during the season, from 2016 onwards.
The iconic Roland Garros site, which has hosted the French Open since its inception 86 years ago, will now be expanded and revamped.
French Tennis Federation president Jean Gachassin said in a statement: "We back the project to create a new Roland Garros venue, extending and modernizing the historic venue at Porte d'Auteuil.
"It's a historic choice, probably the most important for our federation since its creation. Our aim was to offer an ambitious project.
This hasn't been a default choice. The Paris project was the most beautiful of the four.
"This decision has been made against the fashion for having things on giant scales but it's a project which is resolutely focused on the future. This hasn't been a default choice. The Paris project was the most beautiful of the four."
Spain's Rafael Nadal took the men's crown last year while Italian Francesca Schiavone won the women's title.
Meanwhile, Milos Raonic became the first Canadian to clinch an ATP World Tour title since 1995 after beating defending champion Fernando Verdasco 7-6 7-6 at the SAP Open in San Jose, California.
The 20-year-old was ranked 84th before the tournament but moved up to 59th when the new world rankings were released Monday.
Despite playing in his first final Raonic showed few signs of nerves as he survived four set points in the opener, recovering from 2-6 down in the tie-break to take it. He secured the title thanks to another tie-break in the second.
Raonic told the ATP Tour website: "I sort of used up my luck today, in a way. I got out of that first set and the second set I was a little bit more confident by then. It came out the way I wanted it to."
Raonic didn't drop a set in the tournament and finished with 58 aces in his four matches, including 13 in the final.
World number nine Verdasco was impressed by his opponent. He said: "He has good potential and he has one of the best serves, and also on the baseline he plays so aggressive.
"The moments he needs to play solid, he plays solid and I think that he can be a top 20 player very soon."