Mullen - who moved to the Jets in January from Western Sydney Wanderers - has been a mainstay of the Newcastle backline throughout the second half season.
The Socceroos defender is the latest player to commit his playing future to the Jets in recent months after the signings of Nigel Boogaard and Korean youth international Lee Ki-je.
“It’s exciting for me,” Mullen said. “It’s a place that I see myself taking my personal game to the next level, but I also see it as an opportunity to make this club a successful one.
“We have great support from the fans, and are putting structures in place so that we can further things here and create success.”
Mullen is more than happy with the club's direction under its management and coaching staff.
“If I wasn’t happy with the current coaching personnel and structure then I wouldn’t have signed, so that speaks for itself,” he said.
“I am confident with the team that they are putting together, and feel we can be a real threat next season.”
The defender is also excited to link up with his former Reds team-mate Boogaard next season.
“I played with Nigel for a couple of years at Adelaide and he is part of the reason why I was eager to stay,” Mullen said.
“His (Boogaard’s) signing shows the positive mindset of the club and coaching staff. Nigel is a leader, and a born winner.”
Newcastle coach Phil Stubbins was delighted to have finalised Mullen’s stay at the club.
“It’s very important that we sign players that fit into what we are trying to build,” Stubbins said.
“Daniel has fitted into Newcastle the city, and Newcastle the football club like a hand in a glove.
“He (Mullen) has brought some real leadership to the team already, and we’re confident that he will only improve in time.
“I worked with both Daniel and Nigel at Adelaide and they are good, confident, humble, team focussed people.
“Daniel is another fantastic signing for the Newcastle Jets."
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