The 28-year old winger has featured 101 times for the Black Cats since arriving at the Stadium of Light from Birmingham in 2011.
The 65-time capped international started his career in his native Sweden, before signing to Arsenal's academy in 2001 having been spotted playing for the Sweden under-16 national team.
Thought of very highly whilst at Arsenal, he made his debut at the age of 19 in a League Cup tie against Manchester City, but, much like his youth teammates David Bentley and Fabrice Muamba, he struggled to break into the first team - appearing just three times for the Gunners.
He joined Birmingham in January 2007, having been on loan since August 2006, becoming a club favourite as part of the Blues team which won the 2011 League Cup Final against his former employers.
He signed for Sunderland in the summer of 2011, scoring on his debut against Liverpool, and receiving praise from former manager Arsene Wenger, who claimed Larsson was "maybe the best in the league as a free-kick-taker."
The winger featured 41 times for Sunderland last season, scoring a winner against Manchester United as Gus Poyet's men staged an incredible late season run to survive in the Premier League, and his form has seen him rewarded with a new contract, just days after head coach Poyet signed a new deal.
On a statement released on the official Sunderland website, the club confirmed that the deal is for another three years, keeping him on Wearside until 2017.
Quoted in the statement, Larsson expressed his delight at the new deal: "“I’m delighted to have signed a new deal with the club. I’ve had talks with Gus and [Sporting Director] Lee Congerton and I feel that this is a club moving in the right direction and I want to be part of it.
“I had a few options but I want to be at Sunderland and I’m looking forward to the new season.”
Next season bodes well for Sunderland fans, with the news of Larsson's new contract following the announcement of the arrivals of Billy Jones and Jordi Gomez, and the rumoured interest in Jordan Mutch.
Many will be hoping that the Black Cats can build on their late season success as they search for a successful season in the Premier League.