Central midfielder Stephens, 27, has played 114 games for the Seagulls since joining from Charlton in 2014.
He made 39 appearances this season, scoring twice, and helped the club to second place in the Championship.
"I am absolutely delighted Dale has agreed his new deal. I was confident once we secured promotion he would stay," manager Chris Hughton said.
"It was well documented last summer that he had a desire to play in the Premier League, which was understandable - but he put that to one side, has shown a great level of professionalism and was an integral part of the team which won promotion."
Stephens had a transfer request turned down by the club at the start of the campaign, but said he was now happy to have fulfilled his ambitions.
"I came to this club expecting to get promoted and it's probably taken a little longer than expected, but now we are a Premier League side and I want to be a part of that," he told BBC Radio Sussex.
"I realised I could achieve what I want to achieve here and I'm looking forward to next season.
"It will now be nice to see new faces come in and add to the competition and the strength of the squad - it can only be good for the team going into a difficult season."
Dale Stephens has signed a new four-year contract with Brighton following their promotion to the Premier League.