The 37-year-old, who can play in both defence and midfield, joined the Lancashire club in the summer of 2007 from Preston North End and has made nearly 100 appearances for the Turf Moor club.
Owen Coyle , the Burnley manager, said he still has plenty to offer the club.
"His contract's up in the summer, but we've verbally agreed that he'll be here for another year," he told the Lancashire Evening Telegraph.
"I'm not one for picking out individuals, but he's been immense all season.
"He's a model professional and a role model both on and off the pitch. He's been a top player all his career and he's shown a maturity as he's gone on.
"The great thing that I love about him is that he treats every game as if it's his last, I want that from all my players."