The 27-year-old Cameroon defender arrived at Carrow Road in August 2012 from Tottenham and has since made 47 appearances and scored three goals for the Canaries.
Bassong, who was voted player of the year by the fans in his first season with the club, was thrilled to have put pen to paper on a new deal.
"I'm really pleased," he said on www.canaries.co.uk. "It is something I have been looking forward to doing, as, being team captain, I think it is something really important to commit myself even more to the club."
Norwich boss Chris Hughton was equally satisfied to have secured the defender's services for the foreseeable future.
He said: "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."
Bassong recently returned to the Norwich side having struggled for form and fitness this term following knee surgery over the summer, and has now set his sights on getting back to his best.
"I had a little bad time with my fitness," he added. "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."