Ward's contract was due to expire at the end of this season but is now under contract for at least another two years with Burnley.
The 31-year-old bagged a goal in the Clarets shock 3-2 win over Premier League champions Chelsea on Saturday afternoon and looks set to play a key role at Turf Moor in the new campaign.
BREAKING: Stephen Ward signs contract extension at Turf Moor. Read: https://t.co/fdEdTprjH2 pic.twitter.com/GkabKB0MKw
— Burnley FC (@BurnleyOfficial) August 14, 2017
"It's great and long may it continue," Ward said of playing at Turf Moor.
"I'm delighted to have signed. It's just great to be part of a club like this at the minute and hopefully we can have another successful season."