News of Monk's contract comes less than 24 hours after Leon Britton - who has made over 400 appearances for Swansea - signed a new three-and-a-half year deal.
"I'm delighted," Monk told the club's website. "This club has been my life for nearly 10 years and I love it here. My heart is here and I've never wanted to leave from the very first day I arrived.
"I've had a few offers to move elsewhere this season and I've had to do a lot of soul searching to establish what's best to prolong my career.
"The club didn't want me to go, so I felt that while I am still contributing to the team - on and off the pitch - this was the place I wanted to be.
"I'm grateful to the club for their show of faith in me, but I believe it is something I've worked hard for. I may not be the youngest member of the squad, but I've kept myself fit and competitive.
"I haven't played as much as I would have liked this season, but when I've played I think I've shown that I can compete at this level. I'm certainly not going to step aside for the younger players and make it easy for them - I'm still willing to fight for my place and do my best when called upon."