The 29-year-old’s previous deal was set to expire in the summer of 2016.
The new deal will keep Danilo at the Stadio Friuli until the summer of 2018.
Danilo joined Udinese from Brazilian side Palmeiras in the summer of 2009.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.