The 29-year old goalkeeper had been the subject of interest from Premier clubs, including Everton, but has penned a three-year extension which will see him remain at Turf Moor until the summer of 2018.
Heaton, who has been with the Lancashire club since 2013, was thrilled to commit himself to the Clarets despite last season's relegation from the Premier League.
“I'm very pleased as I've had two great years here so far and I've thoroughly enjoyed playing for this club," he told the club's official website.
“It's another three-year deal and this has felt like my home which has helped with my performances so I don't want to stop raising that bar and pushing myself to improve."
“I really love playing for the manager (Sean Dyche) and working with the staff, particularly the goalkeeping coach Billy Mercer who I feel I've improved under and I'm really excited for the times ahead."
BREAKING NEWS: Tom Heaton has put pen-to-paper on a new three-year deal at Turf Moor: http://t.co/zbP9H4ZU7Xpic.twitter.com/2vymHa8F5K
— Burnley FC (@BurnleyOfficial) June 30, 2015