The Italian legend joined last summer and had been linked with a move away to Brazil to join Flamengo.
After agreeing the new deal del Piero said: “It was a big challenge for me, for my family, to take a long trip here and change everything in our life.
“My family and I have had a great time here. The weather, the city, everything is good. But first of all, I’m here to play.
“It’s a challenge. I work to win this challenge and I want to win again next year.”
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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.