The centre back, who made the switch to Leicester in 2012, played every minute as the Foxes completed a scarcely believable title triumph last season.
And the 32-year-old has now committed to Claudio Ranieri's side for at least the next three years.
"To commit my future to Leicester City is a wonderful feeling. Everyone knows how I feel about playing for this club and with my teammates, so I'm proud to have the chance to carry on wearing the shirt long term," he told the club's official website.
"Lifting that Premier League trophy was a moment I will never forget and it's still sinking in. Now we've got to give it everything to defend it as well as showing what we can do in the Champions League."
News of Morgan's fresh terms will be a huge boost to Leicester, which also managed to secure the future of last season's top scorer Jamie Vardy despite heavy interest from Arsenal.
Ranieri will be particularly delighted to have tied his skipper to a new deal having seen N'Golo Kante depart for Premier League rival Chelsea for a fee reported to be in the region of $53 million.
There are also doubts over the long-term future of PFA Player of the Year Riyad Mahrez, who has been linked with a move away from the champion.
Of Morgan's new contract, Ranieri said: "Wes is a leader and a warrior. I'm so happy that he's committed his future to Leicester City Football Club. It's a wonderful time to be part of this team. Last season was so special and Wes was fantastic. Now we have another huge season ahead of us and we need him."
Morgan has made 196 appearances for Leicester since joining from East Midlands rival Nottingham Forest. He helped the club earn promotion from the Championship in the 2013-2014 campaign, and was named in the PFA Team of the Year last term following Leicester's title win.