The 37-year-old Brazil international has been an indispensable member of the Chelsea backline since joining the club on a free transfer from Paris Saint Germain in the summer of 2020.
Silva helped Chelsea win the UEFA Champions League in his first season and was rewarded with another one-year deal.
The former AC Milan defender continues to impress in England even in the twilight of his career, making 22 appearances across all competitions this season and his contract, which had six months to run, has been extended until the end of the 2022/2023 season.
"To play here with Chelsea is a real pleasure," Silva told the club's official website. "I never thought I would play for three years here in this great club, so I'm very happy to stay for another season.
"I will continue to give everything for this club and for the supporters, who have always been by my side since I arrived.
"It's amazing to have this relationship with the fans and not only that but the players, staff and the whole club. I'm going to give everything to keep playing at this level in the most important league in the world."
Chelsea director Marina Granovskaia added: "Thiago Silva's experience, leadership and performances have been and remain very important to this squad, so we are hugely pleased to extend his contract by another year.
"We look forward to his continued influence as we seek honours this season and next, and more of the qualities that have led to him having such a big impact for us on and off the pitch."
