John had originally committed to do 75 shows over a three-year period beginning February 2004. But the hotel-casino accelerated the performance schedule due to demand, completing it in less than 18 months.
"We are delighted with the runaway success of 'The Red Piano' and Elton's agreement to extend his association with Caesars," Caesars Palace President Mark Juliano said in a statement Wednesday.
The agreement calls for another 150 shows through 2008 at the 4,100-seat Colosseum theater built for Celine Dion (search).
In 2003, Dion began a three-year engagement at the Colosseum, performing about 200 shows a year. Her run at Caesars has been extended into 2007.
"The Red Piano," directed and designed by David LaChappelle, appears at the theater when Dion's show is dark. Last year, John's show grossed over $40 million with one of the priciest tickets around at an average of $158 each.