"The club, the team, the fans and the city have long become my home," the 33-year-old former Germany international, who has been at Dortmund since 2002, said in a statement.
"I am happy that, at least until 2014, I will be part of this sensational club and be allowed as captain to continue making history."
The injury-prone defensive midfielder had to wait almost a decade after winning the Bundesliga in his debut season with the club to taste success again, claiming consecutive titles from 2011 as well as the German Cup last year.
The 1997 European champions host Real Madrid in the first leg of their Champions League semi-final next Wednesday.
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