The winger, who joined the Eagles in 2012, has recently been linked with moves to the likes of Arsenal and Juventus.
However, the Italy international has now put an end to the speculation by signing a fresh deal.
"I have had an important meeting with the club. I have renewed the contract with Lazio [and] I am really happy," he told the club's official website.
"There is a lot of satisfaction. I thank the president for keeping his word, despite the many rumours that there were. I seemed I had bought houses in every city."
Candreva has scored one goal from his three outings this season.