"This partnership is something that many people interested in Formula One will have been waiting for and should rightly be excited about," said the sport's commercial supremo Bernie Ecclestone in a statement.
As part of the deal, the Rolex logo will be positioned around grand prix circuits and at certain corners during races with the Swiss company saying its presence would develop over coming seasons.
South Korean elecronics group LG, who signed a five-year deal in 2008 to be the official data processor, have had their branding on timekeeping systems in recent seasons.
Swiss brand Hublot has been Formula One's official watchmaker, with a black-eyed Ecclestone famously appearing in an advert for the brand after he had his watch stolen in a mugging in London in 2010. (Reporting by Alan Baldwin, editing by John Mehaffey)