His performances last season earned him the Fans' Player and Players' Player of the Year awards in May 2018.
Huddersfield boss David Wagner commented: “We all knew that 'Schindy' was a top, top performer after his first season at Huddersfield Town, but his quality really shone through as we played in one of the best leagues in the world last season. He took to the Premier League as if he has played in it all his life.
“We're absolutely delighted that he has signed this new contract at the Club; it's as good as any news or incoming that we had success with during the summer transfer window. As well as being a superb player, he is a top character in the dressing room too; a real leader.
“I still believe that he will continue to improve as a player, too, which is very exciting for all our fans and myself too.
“This is a great boost as we prepare for Chelsea and the start of the new Premier League campaign."