Hanley is tied to Carrow Road until 2025.
Scotland defender Hanley, 29, who started in all three of his country’s group games at Euro 2020, will remain at Carrow Road until 2025, Norwich announced on their official website.
Norwich boss Daniel Farke said: “It’s great news for us. We’re absolutely delighted to have Grant with us for the coming years.
“I have been working with him for many years now and it has been a joy and a pleasure. He’s a great character and also our club captain. He is a great footballer and a great personality in the dressing room.”
Hanley, who joined the Canaries from Newcastle in 2017, made 42 league appearances last season as the club returned to the Premier League as Sky Bet Championship title winners.
He has made a total of 106 first-team appearances for Norwich in all competitions.
The former Blackburn defender said: “I’m very grateful for the opportunity I’ve been given.
“Since the moment I walked through the door, it’s been so welcoming and they’ve made me feel part of something.
“To commit my future here means a lot to me and my family as well. My partner loves it here and it’s such a nice place to live.
“I have a little girl now who’s nearly a year old. Everything about the place is great and I’m really pleased.”