Bassong, 29, joined the Norfolk club from Tottenham Hotspur in August 2012 and, after a loan spell at Watford last season, returned to help clinch promotion under manager Alex Neil, who took over in January.
"I'm very happy to have signed this contract," Bassong told the club website (www.canaries.co.uk).
"It's been an enjoyable time recently, getting promoted and achieving what we wanted to achieve. It provided great satisfaction for all of us.
"I enjoy playing for this team. Bit by bit, it is getting better and I feel better. The manager has played a big part in that. I owe him a lot because he gave me my chance back in the team."
Neil said: "If you look through the spine of the team it's not something I change that often and Seb has been a big part of that.
"He's performed extremely well since I've been here and he's been a really good influence around the place as well, which is great."
After an opening-day 3-1 home defeat against Crystal Palace, Norwich bounced back by winning by the same score at Sunderland last Saturday.
(Reporting by Tim Collings; editing by Clare Fallon)
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