David Letterman on Air Until at least 2010

Letterman, said: "I'm thrilled to be continuing on at CBS. At my age you really don't want to have to learn a new commute." CBS Corporation announced that Letterman had signed the minimum four-year contract on Monday, however it was widely reported in September that he had agreed to the deal.

A spokesman for the company said: "His presence on our air is an ongoing source of pride, and the creativity and imagination that the `Late Show' puts forth every night is an ongoing display of the highest quality entertainment." President Leslie Moonves, who has been a target of Letterman's on-air jokes, added: "We are truly honored that one of the most revered and talented entertainers of our time will continue to call CBS home."

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