The 26-year-old, who had been linked with West Brom, Aston Villa and Crystal Palace, had 12 months remaining on his existing deal but has ended any speculation about his future.
Taylor was a key member of the side which finished eighth in the Premier League last season, making 34 league appearances.
The left-back, who joined the club in 2010 from Conference side Wrexham, has been named in the Wales squad for their Euro 2016 qualifier against Belgium in Cardiff next week.
Source : PA
Source: PA