The extension will keep the Israel international at Brighton until the summer of 2020.
Kayal became Brighton manager Chris Hughton’s first signing in January 2015, when he moved from Celtic.
Hughton told the club’s official website: “I am delighted for Beram, he has been an important member of the squad and a very loyal servant to the club ever since he joined us almost four years ago.
“He is a player I know I can rely on, and he demonstrated his dependability on Saturday against Spurs when he came on early in the game, and I thought he was excellent for us in midfield.
“He’s been through some tough times as well, coming through a couple of bad injuries, but he has always come back stronger and been a reliable member of the squad.
“Beram adds great competition for those midfield places, and I am really pleased he’s agreed to extend his time at the club.”