The 30-year-old has been at the club since 2007 and has been a vital part of the team as they progressed from League One to the Premier League.
Rangel also played in the Capital One Cup triumph over Bradford at Wembley in February, when the Swans won 5-0 to book their place in next season's Europa League.
"I arrived in 2007 and I've already had six excellent years at Swansea," Rangel said. "It has been a great story for me since my debut at Oldham in League One.
"There was the promotion as champions in League One, then we did so well in building our reputation as a passing team in the Championship during a time when people said we couldn't do it.
"Then we got through the play-offs in the Championship against Reading, and that was an amazing achievement.
"After an incredible first season in the Premier League, people doubted we could do the same again or even stay up - but look at what we have accomplished already.
"We are in the top half of the Premier League, we have 40 points already and we have a first major trophy for the club.
"What a story this is. We have shown what we can do in the Premier League, now we are looking forward to showing what we are capable of in Europe."
Rangel, who recently hit the headlines after he and his wife spent time helping to feed Swansea's homeless, is the latest in a string of players to pen new deals at the club.
Michu, Wayne Routledge, Leon Britton, Garry Monk, Ben Davies and Ashley Williams have been among those to commit themselves to Swansea.
He said: "It shows how well things are going here that so many of the squad have signed new contracts.
"The club realises the players are doing a great job and the board and chairman are rewarding us for that.
"We are getting better and better as a club again this season and everyone here is keen to play their part in helping Swansea City grow."
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