The 29-year-old joined the Blues from Bolton Wanderers in 2012 and last season added a Premier League title to the FA Cup, Champions League and Europa League winner's medals he had previously won in west London.
Cahill made only one Premier League start in November, in the 0-0 draw against Tottenham, due to the emergence of Kurt Zouma but has now signalled his intention to stay at Chelsea.
"I’m really pleased to commit my future to Chelsea and it’s great the club has put their faith in me," he said.
"I have achieved a lot here and I hope I can keep on learning, helping the team and lifting trophies over the next four years."
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