The Finnish shot-stopper had looked set to leave the Reebok this summer after 11 years with the club, having stalled on negotiations over a new deal midway through last season.
But Wanderers survival in the top flight has clearly had an impact on his decision to remain with the Whites, despite reported interest from several Premier League clubs including Aston Villa.
The 33-year-old, who has made over 340 appearances for the club, is now likely to see out the remainder of his career at the Reebok Stadium.