The 33-year-old’s new deal is set to expire in the summer of 2013.
“He has made a valuable contribution to our success and I’m delighted for him,” said Swans boss Brendan Rodgers.
“He is a great professional who is getting a chance in the Premier League when he probably should have been playing at this level many years ago.
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“Mark is a great worker. He has everything you want in a committed professional – he lives his life for football and he gives everything for Swansea.”
Gower joined Swansea from Southend United in June 2008.
“I’m feeling fit and enjoying my football more than ever,” said Gower.
“The way the manager wants us to play the game means it’s a pleasure to be part of this midfield and this club.
“At 33, I may not have the same engine as Joe Allen any more but I think experience has made me a bit smarter on how to play the game. I think my decision-making has got a lot better.”