The captain, whose previous deal was due to expire next summer, has signed on at the Stadium of Light until 2016.
Speaking about his fresh terms, Cattermole insisted that he never had any intention of leaving the Black Cats.
"I'm delighted to have signed the new deal," Cattermole told reporters. "The gaffer made it clear at the end of last season that he wanted me at the club and I'm glad to get it done.
"If you look at the signings we've made over the summer, I think it shows the club's ambition. I think this is the best place for me."
The 24-year-old has made 80 appearances for Sunderland since joining from Wigan Athletic in 2009.