Dyer’s previous deal was set to expire next summer, but the new three-year deal will keep the winger at the club until the summer of 2014.
“I’m really pleased. We’ve just got to the Premier League and I want to be part of things,” he said.
“It’s a great club so I’m happy to be here. Talks went well and it was nice and easy to sign a contract.
“We’ve made massive strides as a club and I don’t see why I should want to go anywhere else.
“I can learn my trade here and keep improving as a player.”
“I think we will do well this season,” continued Dyer. “First off, we wanted to achieve our Premier League status and now we want to stay there.
“The rest is about progressing as an individual and hopefully I will keep pushing myself and become a better player.
“Everyone wants to stay, fight for their place and play as much as they can.
“The fans have been with us on this journey to the Premier League – they have been outstanding – and we want to repay them by staying in the Premier League.”
