The Nigeria international signed from Israeli side FC Ashdod on transfer deadline day in August last year and his new contract will keep him with the Scottish champions until 2017.
Ambrose was a central figure as Neil Lennon's men celebrated a league and cup double during his first season in Glasgow and he also helped the Hoops reach the last 16 of the Champions League.
He told the Celtic website: "I have thoroughly enjoyed my time at Celtic so far and I am absolutely delighted to extend my stay at such a fantastic club."
- Sports & Recreation
- Neil Lennon