The English side have exercised an option to extend the 36-year-old’s deal at Stamford bridge by one year, which takes his stay in West London into a second season.
Silva joined the Blues on a free transfer after bringing an end to his successful eight-year stay in Ligue 1 with Paris Saint-Germain.
The Brazilian quickly became fans’ favourite following his arrival in England as he enhanced his reputation as one of the best defenders in his generation during his debut season in the Premier League.
Silva quickly established himself as an important member in the squad, becoming a solid weapon at the heart of Chelsea’s defense under both head coaches Frank Lampard and Thomas Tuchel.
The former AC Milan man featured 34 times in all competitions and scored twice as he helped Chelsea to their second Champions League glory.
Speaking after Silva’s extension, Chelsea director Marina Granovskaia said: ‘When we brought Thiago Silva in last summer, we knew we were adding a world-class player to the squad. Thiago has duly shown everyone at Chelsea his immense quality throughout this season, and he has had a huge influence on and off the pitch for us.
'We said when he signed that we hoped Thiago would add new trophies to his impressive list of honours, and he has done just that with our success in the Champions League this weekend. We now hope that he carries on in exactly the same fashion in the coming year.’