The new deal means the American stopper will complete 10 seasons of service to the Premier League club.
The 36-year-old, who has started every league fixture in the last four seasons, said: "I'm delighted to have extended the agreement by a further 12 months. It was not a difficult decision to make.
"Blackburn Rovers is home to me. This is my club and I have a special affinity with it."
Friedel, who joined Rovers from Liverpool in 2000, played his 300th league game in English football against Everton at the weekend. He also set a new club record for Premier League appearances against Fulham in November, overtaking former captain Tim Sherwood's total of 235.
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