The new deal will keep the 35-year-old with the Premier League side until the summer of 2018.
“I’m really pleased to be staying at the Club; I’ve been here for a number of years now and I love it,” Crouch told the club’s official website.
“I come in every day with a smile on my face and long may that continue.
“Obviously I didn’t want to go anywhere, I just wanted to play.
“I was a little bit frustrated at not playing as many games as I’d like.
“That’s changed recently; I’ve played a few and really enjoyed it.
“I know that I can play and impact games at this level for a number of years yet so hopefully I can continue to do that.”
