The 25-year-old had been linked with a move to his former club Manchester United and rivals City, but has now committed his long-term future to the Potters.
Manager Tony Pulis expressed his delight his captain has penned a new deal at the club.
|18/1||Stoke are 18/1 with PaddyPower to finish in the Premier League's top six this season|
He told reporters: "It looks like Ryan Shawcross has agreed a new contract, so that's great news for this football club.
"I'm delighted that Ryan sees his future here. It's fantastic news for us.
“I think with him agreeing the contract, it sends out a message to everyone. We want to try and keep our best players.
“We had to make sure it was done properly and done right. It had to balance off both sides, but we’re really, really pleased.”
Shawcross has made 190 appearances for Stoke since joining the club on a permanent basis in 2008 from the Red Devils, after initially spending the 2007-08 campaign on loan at Pulis' side.
This season, the centre-back has been the foundation of a Stoke defence which has conceded just 20 goals, earning him his first international appearance for England against Sweden in November.