The Swans announced the news on their official website, confirming that the 28-year-old Holland international had committed his long-term future to them.
Vorm joined Swansea from Utrecht last summer on the eve of their debut season in the Barclays Premier League, and enjoyed a stellar campaign, sweeping the board at the club's player of the year awards.
Speculation had linked him with a move away from the Liberty Stadium as a result, especially in light of the man who signed him, Brendan Rodgers, leaving for Liverpool, but that talk has now been quashed.
I'm delighted. I'm enjoying my time here very much and it is one of the reasons why I've signed an extension," Vorm told his club's official website.
"I can also only see things at Swansea getting better and better. I can see a lot of positive things happening here and I believe the club has a bright future ahead of it.
"The club has signed a lot of its quality players for longer periods, which is a good thing."