The crime drama series, which is loosely based on the Coen brothers' 1996 crime film of the same name, has earned rave reviews from critics.
First season had earned 18 Emmy nominations and won three of them.
Creator/executive producer Noah Hawley will be back overseeing the third installment of the series, said The Hollywood Reporter.
"Year two of Fargo is an extraordinary achievement and, given Noah Hawley's masterful storytelling, we can't wait to see where the third, all-new version of Fargo takes us," said FX Networks and FX Productions president of programming Eric Schrier.
Cast and setting for the third season have not been announced yet.
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