Chambers, who played in Queensland's State of Origin I loss to NSW on Wednesday night, has spent his entire rugby league career at the Storm after debuting in 2007.
He left the club at the end of the 2009 season to play rugby union for the Queensland Reds before returning to the Storm in 2012.
The 29-year-old has played 159 NRL games, winning a premiership in 2012 and playing in Melbourne's losing grand final against Cronulla last year.
"Will has grown up here at the Melbourne Storm, both as a person and as a footballer."
He will remain at the Storm, where he is a member of the club's leadership group, until at least the end of the 2020 season.
Club football director, Frank Ponissi has seen Chambers development.
"Will has grown up here at the Melbourne Storm, both as a person and as a footballer," he said.
“He is one of the leading centres in the competition."
Chambers has played for Queensland five times and also represented the Indigenous All Stars.
Melbourne Storm play Newcastle Knights at 6pm this Friday night at AAMI Park.