The new deal will keep the 33-year-old at Loftus Road until the summer of 2013.
Derry told the club’s official website: “I’m absolutely chuffed to bits.
“The stage the club is at with the new owners and the calibre of players we’re attracting to the football club is something special and I’m just delighted to be part of it.”
Derry has admitted he will be interested in a coaching role at Loftus Road when he decides to retire.
He said “It’s no secret that I want to get into coaching and then hopefully management when my playing career finishes.
“Hopefully I’ll get the opportunity to do that at this fantastic football club.”
Manager Warnock added: “Tony (Fernandes) has been so impressed with Shaun since his arrival at the club and this is just a show of faith for what he does for the club.
“He’s got a few ideas about going into coaching when he finishes playing and at a club like ours, where the new owners have got so many long-term plans, there will undoubtedly be a role for him.
“He’s still got a massive impact to make as a player here first and foremost and that’s what I want him to focus on at the moment, but I think he can start having an input off-the-field too.”
