The new deal will keep the 23-year-old at Pride Park until the summer of 2012.
“We all know Steven has the ability to become an established player at Derby County but last year we had question marks over his fitness levels,” said Derby manager Nigel Clough.
“Steven proved to us in the summer just how determined he was to put a stop-start two years behind him and he reported back in fantastic shape.
“His character has been a breath of fresh air, he has worked incredibly hard and if anyone deserves a slice of good fortune, it is Steven.
“The contract is a reward for all the hard work he has put in, but he knows it doesn’t stop here and he has to maintain the standards he has set himself.”