"I'm delighted because it's an opportunity to build on the good work we did last season and now I'm just looking forward to the new one," Robson-Kanu told the club's website.
"It was an easy decision. I've enjoyed my time here playing under Tony Pulis. It was a strong season and I want to build on the good work and contribute to a more successful future."
West Brom signed striker Jay Rodriguez from Southampton earlier this month and Robson-Kanu believes the increased competition for a starting spot can help the club climb higher.
"It's vital competition. We want to be as competitive as possible and everyone will be pushing each other over the course of the season," Robson-Kanu added.
"I think where we finished was great for the club but it's something we definitely want to build on and progress further as we go forward."
West Brom start the next campaign with a home match against Bournemouth at the Hawthorns on Aug. 12.
(Reporting by Aditi Prakash in Bengaluru)
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