The 33-year-old has been a key figure behind the Chiefs rise in the game, playing a pivotal role in the side that managed to win the Aviva Premiership Grand Final last season.
Steenson has now been rewarded with a new deal at Sandy Park and the club's record points scorer is delighted to have got the deal over the line.
"Obviously I'm very pleased and I'm really enjoying my rugby here," Steenson told the club's website. "To sign the new deal is very exciting for both me and my family.
"I've been lucky enough to be involved with the squad over the years and I've seen the place develop hugely to the position we are in now."