The 27-year-old centre-back, who joined the Canaries from Tottenham Hotspur last year, said that he is happy to have sorted out his future at Carrow Road following a difficult spell on the sidelines.
"I'm really pleased, it is something I have been looking forward to doing," the Cameroon international told the club's official website. "I think it is something really important to commit myself even more to the club.
"I had a little bad time with my fitness, as people know I missed pre-season and I had a knee injury and an operation.
"So I needed time to get back to my best and while I wasn't playing I was working hard on my fitness, so now I feel better and am back on track."
Bassong was named Player of the Year for Norwich last season.