The 32-year-old has been virtually ever-present for the Seasiders this season since penning a five-month deal in the summer following his release from Notts County.
The Sky Bet Championship club's chairman Karl Oyston promised Bishop he would be rewarded with a longer stay at Bloomfield Road should he impress and the utility man is delighted he will now remain with Paul Ince's men beyond January.
"The contract being signed takes some pressure off me," he told Blackpool's official website.
"Coming here on a short-term deal gave me it all to do. Fair play to the chairman, he said if I came in and did well for him then he'd offer me a long-term deal.
"He's stuck to his word and I'd like to thank him and the club for showing faith in me. It's a privilege to be playing here and I'll play in goal if it helps the team."
Ince possesses one of the smaller squads in the entire division and injuries and suspensions have seen Bishop slot in to a variety of roles in defence and midfield, something he is willing to do.
He added: "I'm happy with the amount of games I've played, but I know I can improve.
"I always get DVDs of the games and watch them at home to look how I can improve. It's hard when I don't know what position I'll be playing.
"I'll play anywhere, I just love playing football and hope that comes across in the way I play."