The new deal will keep the 24-year-old at Celtic until the summer of 2020.
Bitton told the club’s official website: “As soon as I got a new offer from Celtic I had no questions about signing. When you play for a club like Celtic you don’t think twice.
“It’s a huge club, the best fans in the world and Celtic Park is one of the best stages in Europe so I’m just delighted to extend my stay here. Celtic is a special club and every time I go to the pitch I get goosebumps.
“As a player, when you get the trust of a club it gives you confidence and you appreciate it. You just want to give that back as much as you can and like I say, when you play here you don’t think twice. I enjoy every minute at Celtic and my wife is very happy here so there was never any need for change. This is where I want to be.
“I have a great relationship with the manager and the backroom staff at Celtic who have all been magnificent with me and I have a group of team-mates who I respect so highly.
“I am so pleased to commit my long-term future to Celtic and I now look forward to doing everything I can to bring the club and our fans more and more success.”
Bitton joined the Hoops from FC Ashdod in the summer of 2013.