Commons moved to Celtic from Derby County in January 2011, and has gone on to score 74 goals in 175 appearances for the club.
The attacking midfielder's latest goal came in Sunday's League Cup semi-final win over fierce rivals Rangers, as Ronny Deila's men prevailed over their old foes at Hampden Park.
"I'm absolutely delighted to have signed this new contract with the club," Commons told the club's official website.
"I've loved my time at Celtic and this is where I want to continue playing my football.
"The club is in a great place, we're still in four competitions this season, and already have a cup final to look forward to, and I want to continue playing my part in bringing more success to the club.
"I'm also delighted to continue playing in front of these magnificent fans, who have been brilliant with me and my family from the day I joined Celtic."
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