The deal means the 32-year-old will spend almost 20 years with the club, whose academy side he joined before going on to appear for the first team in 2008.
One jersey he will be wearing at the end of the current campaign is that of Japan's NEC Green Rockets, who he has been loaned to until the end of May.
In a statement from Saracens, Goode said: "I love being part of this club. I love the environment, coming in every day and being with friends, people who I've known for many years.
"I've had 14 years at this club and I've loved every moment. Everyone has given me so much and given me and my family so many memories over the years which will stay with me for the rest of my life."
Goode started in Saracens' first Premiership Rugby triumph at the end of 2010/11 campaign, with the club saying in a statement he is on track to join "an elite group of Saracens" with 300 appearances in the black and red.
Mark McCall, the club's director of rugby, said Goode was "one of the most gifted players of his generation".
"To watch him play is to be reminded of the subtle, skilful and intangible aspects that encapsulate great rugby performances. His balance on the run, bravery in the air and execution under pressure have often made the difference in the club's biggest moments."
Goode was one of five Saracens players to apologise after being pictured breaching social distancing rules in May.
Goode becomes the latest player to recommit despite Saracens playing in the second tier next season after a points deduction for breaching salary cap regulations.
Earlier this month the club announced nine players had left but England internationals Elliot Daly, Owen Farrell, Jamie George, Maro Itoje and Billy and Mako Vunipola have all signed new deals.
In total 14 senior players have signed new contracts at the club.
Saracens travel to Ashton Gate on Saturday to play Bristol Bears.
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