The Swans midfielder has signed a one-year contract extension to be tied to the Premier League new-boys until 2013.
"Brendan (Rodgers) was keen to ensure Andrea was retained as an important member of the squad," chairman Huw Jenkins told the club's official website.
"He has grown into the squad over the past few years and his technical ability is well suited to the Premier League.
"We are delighted that Andrea has decided to extend his contract, and we look forward to seeing him play his part as the club looks to make an impact in the Premier League."
He added: "Improving and extending certain players' contracts well in advance is something we can now look into thanks to our Premier League status.
"Over the last few years we have been asked by supporters why the club did not do it, but the simple explanation is that we were not in a financial position to do so.
"The budget was set to compete in the Championship, so any further money spent on securing certain players' contracts earlier would have jeopardised certain signings along the way.