After a season of uncertainty over the midfielder's future, the Blues confirmed on Thursday that the England midfielder will remain at Stamford Bridge next season.
Lampard joined from West Ham United in 2001 for £11m and has scored a club-record 203 goals in his 12 seasons in west London.
After months of speculation over whether he would stay or go, the deal for Lampard to continue at Chelsea for a 13th season was announced the morning after he captained the Blues in Wednesday night's Europa League final win over Benfica in Amsterdam.
Lampard, who will be 35 next month, said told Chelsea's website: "I'm absolutely delighted. Everybody knows I always maintained the dream was to stay at Chelsea.
"We've been talking for ages and even though it went on for quite a period it was always amicable. I want to thank Mr Abramovich [Chelsea owner Roman Abramovich] for everything he's done in making the dream a reality.
"I love this club, the staff, the players and especially the supporters, who have treated me fantastically since the day I arrived. The thought of helping the club to more success in the forthcoming years is all I ever wanted. I couldn't be happier."
It caps a stunning week for Lampard, who on Saturday scored twice in the Barclays Premier League win over Aston Villa to surpass Bobby Tambling's 43-year-old mark as Chelsea's record goalscorer.
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