The 27-year-old, who scored a try 22 seconds after coming on as a replacement in England's 47-17 victory over Italy on Saturday -- his first Six Nations appearance since 2008 -- was due to become a free agent at the end of the season.
He had been hotly-tipped to move to France, which would have secured a significant pay rise but thwart his international ambitions, with England's policy of selecting players only playing in the country.
"There’s no way I want to be out of this England side ever again, for as long as I’m playing," he said after receiving a rousing response from the Twickenham crowd after his introduction in the Italy victory.
Cipriani did make two appearances off the bench on the tour of New Zealand last June but had not featured in a Six Nations game since a man of the match performance against Ireland under Brian Ashton seven years ago.
The stand off, whose international career was derailed by injuries and off-field controversies, still faces a stiff battle to force his way past George Ford and Owen Farrell, when fit, to become a regular in Stuart Lancaster's squad.
Cipriani said he was delighted to finally conclude the contract talks with Sale that began in December.
"It's a quality set-up and the future looks great at the club with some exciting times ahead," he said in a statement on the club's website (www.salesharks.com).
"One of the main reasons I signed the new deal was that we've got a tight squad and it embraces new talent.
"It's also an environment that makes you feel very welcome so, as I say, I'm really thrilled about signing the new deal and looking forward to the future."
(Reporting By Sam Holden; Editing by John O'Brien and Justin Palmer)
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