The former Sheffield United player joins fellow defenders Ciaran Clark and Nathan Baker, midfielder Ashley Westwood, striker Andi Weimann and goalkeeper Brad Guzan in committing his future to the Villans.
Boss Paul Lambert has also been busy in the transfer market having signed six new players in the off season in defenders Jores Okore and Antonio Luna, midfielders Leandro Bacuna and Aleksander Tonev, striker Nicklas Helenius and goalkeeper Jed Steer.
Lowton moved from Bramall Lane for an undisclosed fee on a four-year contract 12 months ago but his new deal will see him extend his stay until at least 2017.
"It is a very exciting time for the club," the 24-year-old told the club website. "We went through some difficult periods last season but we finished strongly and had won a lot of people over by the end of the season.
"The fans were with us all the way though and they made themselves heard home and away, superbly well and that's something that really helps the team and is appreciated greatly by all the lads. Everyone could see what the gaffer was working towards and over the second half of the season it showed.
"With the new signings this season as well as some players signing new contracts, the likes of me and Ashley, Andi, Brad, Ciaran and Nathan, it shows the club is moving forward and it's really exciting to be a part of that.
"We all feel part of something here and we feel strongly that we're building towards something very exciting and positive for the club. You could see it right from the start of last season when I signed that the club was going to go with what the gaffer wanted. He wanted to put his plans in place and he stuck by his guns all season.
"It turned out to be the right decision and he's continued that this season, signing players straight away and getting us into the pre-season. Everyone's playing together in the matches and everything is coming together nicely.
"It's important that we work towards that first game at Arsenal, that's really what all the preparation is about right now, being ready for the start of a long campaign.
"We know Arsenal will be a tough game, as it was last year, but with the new signings and the way we played at the end of last season I know we can go down there and give a good account of ourselves."