The 30-year-old joins the likes of Mike Williams, Telusa Veainu, Matt Toomua and Greg Bateman in agreeing to extended deals.
Cole, who is an academy graduate, has turned out for the club on 185 occasions and insists he did not have to think twice about penning a new deal.
"I am very happy to sign a new contract at Leicester," he told the club's official website. "The quality and depth of the playing squad along with the direction of Matt O'Connor made re-signing an easy decision to make."
Head coach Matt O'Connor believes Cole is the perfect example of what can be achieved with hard work and dedication and has hailed his leadership skills.
"Coley is an outstanding player and a great example of a player who has come through the ranks at the club, earning his place in the senior squad and progressing to become first choice for club and country," he said.
"He is among a core of senior professionals who have come through together here and are now in key leadership roles within the squad."