Bardsley’s contract was set to expire in the summer but the defender has signed new three-and-a-half year contract.
“I’m delighted to be able to stay,” he told the club’s official website.
“Talks have been ongoing over the last couple of weeks and I’m really pleased to be here for the next three and a half years.
“It’s a club which I enjoy being at, I love living up here, the lads and everything about being here. Being part of the manager’s plans is great and I’m enjoying my football.”
Manager Steve Bruce commented: “Obviously there’s a decision myself and the board have had to make and to be fair to Phil he has done very, very well.
“The last thing we wanted to do was to let Phil run into a Bosman situation.
“He has played his part, he is a valuable member of the squad and he has been rewarded for that.”