The 27-year-old arrived from Surrey in 2013 and will remain with Sussex until the end of the 2017 season.
Jordan, who is part of England's World Twenty20 squad, played just six County Championship matches in an injury-hit season last year as Sussex were relegated to Division Two.
"I'm thrilled to be extending my contract," he told the club website.
"I'm looking forward to putting in my best performances on the pitch, helping Sussex back into Division One and back to winning trophies."
Sussex head coach Mark Davis described Jordan as a "vital" player, who will continue to "balance" the team in all formats of the game.
"His all-round ability as a fast bowler, destructive batsman and brilliant catcher makes him a key member of our team at Sussex," Davis added.
England all-rounder Chris Jordan has signed a new one-year contract extension with Sussex.