The Nigerian midfielder has been with the Blues since 2006, when Chelsea won a controversial battle with Manchester United to sign Mikel from Norwegian side Lyn Oslo.
Mikel, who feels he is now 'hitting his peak', has made over 260 appearances for the club and has been a regular this season under both Roberto Di Matteo and Rafa Benitez.
The 25-year-old has collected seven titles during his time at the Bridge, winning four FA Cup winners medals, one Premier League, a Carling Cup and a Champions League medal.
Mikel told the club's official website: "Chelsea seems like my home now because I have been here for over six years and I enjoy my time here. I come into the training ground every day to work and I value my time there.
"I am happy and want to keep going and win trophies for this club. I hope these next five years will bring even more success and I can win trophies with the new players we have here."