The new deal will keep the 34-year-old at the club until the summer of 2014.
“I am obviously very happy,” he told the club’s official website.
“The adventure continues and I still want to play, to have fun on the field within this group.
“I hope to continue being effective next season.”
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.