The Swans ace has been weighing offers with Fremantle particularly keen to prise the Perth-born playmaker from Sydney.
But the 23-year-old has opted to remain at the Swans until the end of 2027, when he will qualify for free agency.
Warner earlier this year was open-minded about his future - he was due to fall off-contract at season's end.
The explosive midfielder was being courted heavily by West Coast and the Dockers, who were understood to have tabled a long-term offer.
But the 91-gamer elected to stay in Sydney.
"I've loved every minute of my time at the Swans and I'm excited for what's ahead," Warner said in a statement.
"From the moment I arrived six years ago all the people - players, coaches, and staff - have embraced me and helped me feel at home.
"I have great belief in the direction we are heading and know we have exciting times to come."
The decision of Warner, who won his first All Australian blazer last season, is welcome relief for Dean Cox in his first year as Sydney coach.
Cox had always expressed quiet confidence that Warner would reject the WA offers.
Sydney's football manager Leon Cameron described the re-signing as a coup for the club.
"Chad is an elite talent with an exceptional work ethic so we are rapt to have him commit to Sydney for a further two years," Cameron said in a statement.
"At just 23, Chad has already made a huge impact, and with his best football still ahead of him, we're excited to see his journey continue in Sydney."
The Swans took Warner with pick 39 at the 2019 national draft.
His recommitment follows his younger brother Corey earlier inking a two-year contract extension with the Swans.
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