Chelsea FC Chief Executive, Ron Gourlay said: 'Frank has been an important player for Chelsea Football Club for a long time and has played a significant part in the club's success.
'We have been talking to him since the end of last year and our discussions have been entirely positive throughout. We are delighted we are now announcing an extension to his contract which will keep him at the club until 2014.'
Lampard added: 'I'm absolutely delighted. Everybody knows I always maintained the dream was to stay at Chelsea. We've been talking for ages and even though it went on for quite a period it was always amicable.
'I want to thank Mr Abramovich for everything he's done in making the dream a reality. I love this club, the staff, the players and especially the supporters, who have treated me fantastically since the day I arrived.
'The thought of helping the club to more success in the forthcoming years is all I ever wanted. I couldn't be happier.'
The 2013/14 season will be Frank Lampard's 13th season at Chelsea after being signed from West Ham in 2001.