Silva's previous contract was set to expire this summer but he has put pen-to-paper on a deal that will last until the summer of 2024.
The 38-year-old joined Chelsea on a free transfer from Paris Saint Germain in the summer of 2020 and has helped the Blues win the UEFA Champions League, UEFA Super Cup and FIFA Club World Cup in his time at the club.
The veteran Brazil international has made a mockery of his age in England, putting in impressive performances on a consistent basis.
"I am honestly so happy to continue my career with the Blues," he told the club's official website.
"When I signed my first contract here, it was to just do one year. Now it is already the fourth! I could not have imagined that, but really it is a very special moment for me to sign and stay at Chelsea."
Chelsea chairman Todd Boehly and co-controlling owner Behdad Eghbali released a joint statement expressing their delight at Silva committing his future to the club.
'We're delighted that Thiago has decided to continue with Chelsea,' they said.
‘He’s a world-class talent, as he’s proven over many years for club and country, and his experience, quality and leadership skills are vital to our vision going forward.
‘We’re thrilled he has extended his contract with us and we look forward to more success with him ahead!'
