The 29-year-old, who arrived at Turf Moor in 2010, was one of a number of first team players out of contract at the end of the season.
But manager Sean Dyche announced on Wednesday that Marney, who has made 100 league starts for the Clarets, will be extending his stay and is vital in his plans for next season.
Speaking to the club's official website, Dyche said: "We are absolutely delighted that Dean has signed an extended deal and it is another piece in the planning and preparation going forwards.
"People will be aware we are having to be prudent with our finances, but we also want to remain competitive and keep progressing the club.
"In his time at Turf Moor over the past couple of seasons, Dean has quite clearly shown that he wants to be competitive with us.
"His commitment is another sign that players want to be at Burnley Football Club and take us on this journey.
"We want to build something here and it was always in my thoughts to get Dean on a new deal.
"Equally, Dean has always intimated that he would like to sort something out and stay.
"The fact he was eager to do so speaks volumes."