The Dane's new deal runs through to the summer of 2015, and he has made it clear he will be at the Liberty Stadium next season.
The announcement of the new contract was a relief for the South Wales club, who had seen Laudrup linked with jobs at Real Madrid, Chelsea and Manchester City.
The uncertainty over Laudrup's future also had the potential to affect his chances of bringing in the new faces he wants to help the club compete in the Europa League next season, a reward for their Capital One Cup triumph.
Real Betis midfielder Jose Canas and Celta Vigo striker Iago Aspas are just two players Swansea are looking to bring in this summer, and Laudrup hopes the knowledge he will remain in charge next season gives prospective targets the confidence to commit to a move.
He said: "The contract is for the next two seasons, but the most important thing for me was at least people knew I was going to be here next season.
"I had one year left and everyone would have said I would probably leave in the summer.
"It's important to give out the right signal that I want to stay, so I extended for one year.
"It could be a factor in the transfer market particularly if players come from certain countries, like Spain.
"Now everyone knows what we want to do here for next season."
Laudrup has not been the only man at Swansea attracting admiring glances.
Key players such as Michu, Ashley Williams and Michel Vorm have all been linked with the Premier League's big guns. But the trio are among a number of Swansea players who have penned new deals over the course of the season.
And Laudrup has warned any suitors, he has no intention of letting his key men go.
He said: "I know players here who have renewed and extended their contracts may not stay five years if they have signed that long, but they will at least stay next year. That's what I hope.
"You never know but I don't think we will lose that many players. You never know, it may be one or something like that.
"But other clubs also have to remember they are under contract so we will never allow three, four or five to all go."