The new deal will keep the 29-year-old at the club until the summer of 2013.
Fabiano had been linked with Tottenham and Marseille this summer.
He said: “It’s a very happy day. This is my home, I’ve been here six seasons and I will try to continue scoring goals and continue making history for Sevilla.
“My first option was to renew with Sevilla. I rejected many offers and there were many interested teams. My desire was always to be here and what’s true is that we have made a great effort to renew the contract.”
He added: “Sevilla have given me everything. When I arrived here the fans didn’t think much of Luis Fabiano, because at my two previous teams in Europe things didn’t go well.
“But here I’ve returned to the national team, I’ve won many titles…I owe a lot to Sevilla, that’s the truth.”
