The versatile 22-year-old Academy graduate is delighted to have committed his future to Stanley on the back of a campaign in which he made 40 appearances, scoring four goals.
"I'm made up to be staying," he said. "The gaffer spoke to me quite early on and I was more than happy to sign up again. This has been my most successful season so far and I think I've done quite well.
"Getting a two-year deal is great and I like to think it's because of the season I've had. I give everything in every game I play and I'd just like to thank the gaffer and Leam (Richardson, assistant manager) for rewarding me with this deal."
Murphy added: "Hopefully there will still be some familiar faces around next season but there will obviously need to be some new players coming in too and that's exciting. Hopefully new faces will help us move to the next level. I'm looking forward to next season already and this one hasn't even finished."
Like several other Accrington players, Murphy's current deal was due to expire in the summer, and manager Paul Cook hopes to announce further new contracts in the next few days.