The Ivory Coast international has become a big fan favourite in south Wales since joining for a club-record fee of £12 million from Vitesse Arnhem in 2013.
Bony, who scored 25 goals in all competitions in his first season at the club, has been linked the likes of the Liverpool and Arsenal due to his impressive form.
However, he has seemingly put an end to speculation on his future by signing a new deal that extends his stay with the Premier League club for an additional 12 months.
"It's great news for the club," Swansea manager Garry Monk told the club's official website.
"I've spoken a lot about what Bony has brought to the club not just on the pitch but off it as well.
"These types of players are ones that we do our best to keep at the club for a long time. But it's also important that we see commitment from that player towards the club, his team-mates and the fans.
"Bony has shown that he is very committed to this club by signing an extension here.
"When we talk about the future and progressing it can't be just talk, there has to be commitment from myself, the players and the club.
"Bony has bought into the direction the club wants to take. He is a big player for us so to tie down his future is fantastic news for everyone connected with the club.
"I'm sure the fans will be more than happy with the extension. For them to see a big player, who they have a lot of affection for, tie down his future with their club is something they will thoroughly enjoy hearing about."
Bony has struggled to match his prolific form of last term, but four goals to his name from 11 Premier League appearances represents a reasonable return.
He has developed a strong understanding with Gylfi Sigurdsson in attack, the Ivorian and Icelandic duo helping Swansea to fifth place in the top flight.
They resume their campaign after the international break at Premier League champions Manchester City on Saturday.
