The full-back was one of the standout performers for Sean Dyche's men in 2013-14 as they ended a four-year absence from the top flight by clinching second place in the Championship.
Trippier made 41 league appearances during that successful promotion campaign and is now committed to the Lancashire club until at least 2017.
His consistent performances reportedly alerted the attention of several top-flight sides, including FA Cup winners Arsenal, Newcastle and Southampton.
The 23-year-old came through the youth ranks at Premier League champions Manchester City before enjoying two loan spells at Barnsley.
Burnley originally signed the former England Under-21s international on a temporary basis in July 2011 before making the move permanent in January 2012.
It marks further good news for the Lancashire club after fellow defender Daniel Lafferty also extended his stay by three years on Wednesday.