Dvid Luiz, the Brazilian international moved to Stamford Bridge in January 2011 in a 21-million-pound deal from Portuguese side Benfica.
Having been linked with a switch to Barcelona in the off-season, the 25-year-old - who won both the Champions League and the FA Cup with Chelsea last season - has ended speculation regarding his future by committing his long-term future with Roberto Di Matteo's side.
"I am very happy to sign a new contract with Chelsea," Luiz told the club's official website.
"It is a great club and I look forward to winning more trophies here. I want to play for a long time at the top level - which is what playing for Chelsea means.
"I love everything about the club and especially the fans, who have made me very welcome and given me great support."