The new deal will keep Rangel at the Liberty Stadium until the summer of 2016.
"I arrived in 2007 and I've already had six excellent years at Swansea," Rangel said. "It has been a great story for me since my debut at Oldham in League One.
"There was the promotion as champions in League One, then we did so well in building our reputation as a passing team in the Championship during a time when people said we couldn't do it.
"Then we got through the play-offs in the Championship against Reading, and that was an amazing achievement.
"After an incredible first season in the Premier League, people doubted we could do the same again or even stay up - but look at what we have accomplished already.
"We are in the top half of the Premier League, we have 40 points already and we have a first major trophy for the club.
"What a story this is. We have shown what we can do in the Premier League, now we are looking forward to showing what we are capable of in Europe."