The 33-year-old defender, who has captained the Swans in all four divisions during their remarkable rise, has struggled for playing time this season but has ended speculation about his future by signing a deal that commits him to the club until the summer of 2015.
News of Monk's contract comes less than 24 hours after Leon Britton - who has made over 400 appearances for Swansea - signed a new three-and-a-half year deal.
Britton and Monk are two of only three players at the club - Alan Tate the other - to have played with the Swans in all four divisions.
Their contract signings come on the back of new deals for Michu, Wayne Routledge, Ashley Williams, Ben Davies and Michel Vorm.
"I'm delighted," Monk told the club's website. "This club has been my life for nearly 10 years and I love it here. My heart is here and I've never wanted to leave from the very first day I arrived.
"I've had a few offers to move elsewhere this season and I've had to do a lot of soul searching to establish what's best to prolong my career.
"The club didn't want me to go, so I felt that while I am still contributing to the team - on and off the pitch - this was the place I wanted to be.
"I'm grateful to the club for their show of faith in me, but I believe it is something I've worked hard for. I may not be the youngest member of the squad, but I've kept myself fit and competitive.
"I haven't played as much as I would have liked this season, but when I've played I think I've shown that I can compete at this level. I'm certainly not going to step aside for the younger players and make it easy for them - I'm still willing to fight for my place and do my best when called upon."
Source: PA