The Canaries captain's new two-and-a-half-year contract will keep him with the Carrow Road club until June 2016.
The 27-year-old is currently enjoying his second season with Norwich and has made 47 appearances for the Premier League club so far.
Bassong told the club's official website: "I'm really pleased, it is something I have been looking forward to doing.
"I think it is something really important to commit myself even more to the club.
"I had a little bad time with my fitness, as people know I missed pre-season and I had a knee injury and an operation.
"So I needed time to get back to my best and while I wasn't playing I was working hard on my fitness, so now I feel better and am back on track."
Manager Chris Hughton added: "We're delighted that we've had the opportunity to extend Seb's contract - somebody who has been an integral part of everything we've done so far and of course our player of the season last year."