The 23-year-old midfielder – capped once by England – has scored nine goals in 77 games for the Premier League club since his £5million ($7.6million) move from Liverpool in 2013.
"The midfielder had two years left on his original deal but has penned fresh terms that will see him remain at the Liberty until the summer of June 2019," read a statement on the official Swansea website.
Shelvey, who spent three years at Liverpool and was a member of the side that won the 2012 League Cup, believes that Swansea can improve on the eighth spot they finished in last season and challenge for a place in European club competition.
"Outside of the top four I feel we are in that next bracket where we are looking to get into the European places," he said after signing the contract.
"At this club, with the players we have brought in and the players we already have, we can do that. We just missed out last year but hopefully this year it will happen for us."
Monk, who won huge praise for the style his side played in achieving their high finish last term, warned Shelvey over his lack of discipline ahead of a league game with Liverpool last December telling him to 'wise up' – it didn't have an immediate effect as he was sent off for a foul on Emre Can.
However, Shelvey improved markedly after that and had done enough by the end of the season to put a stop to the rumours that Swansea were looking to sell him.
"It’s (the contract) been on the cards for a few weeks and I’m glad to get the papers signed so I can now concentrate on my football," said Shelvey.
"When my agent mentioned it to me I said 'when can we get it signed?'
"It’s an honour and privilege to sign for another four years at Swansea and give the fans back the support they’ve shown in me."
Source Supersport
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