The new deal means the 33-year-old former England international will have spent more than 13 years as a professional at Ewood Park.
And after a strong end to the 2012/13 campaign Rovers manager Gary Bowyer made no secret of his desire to keep the experienced midfielder on board.
"The quality and experience he brings is invaluable to us," Bowyer told the club's official website.
"We all know how much this club means to him."
Blackburn last week