With only a year left on his deal Speed’s future had become the subject of media speculation, with Middlesbrough widely tipped to make a bid for his services.
But following another outstanding campaign last season the club have decided to extend his contract until 2005.
Sir Bobby was pleased to hear the news, telling the club’s official website: “I am delighted for Gary. He has been absolutely massive for me at this club and his influence and his influence on the team through his personality and playing ability cannot be underestimated.”
Speed himself added: "It's a great club to play for and now I've got another deal I am delighted about it."