The former England international, who moved to the Britannia Stadium for £10million six years ago, will now remain with the Potters until at least the summer of 2019.
Crouch, 36, has scored three times for Stoke in the Premier League this season taking his overall tally to 58 for Mark Hughes' side.
The forward scored the winner for Stoke in their 2-1 victory against Southampton in September, before he was on target earlier this month to salvage a late point against Leicester. He also scored the equaliser for Stoke in their 1-1 draw at West Brom back in August.
Crouch has made 440 appearances in the Premier League during a career which has included spells at Tottenham, Portsmouth, Southampton and Liverpool. He has scored 106 goals during that time.
"Peter has been with Stoke longer than he has been with any other club which I think speaks volumes for how he views us and how we view him," said Stoke boss Hughes.
"He still has so much to offer us. He may be 36 but he continues to have a major impact on games, as he has proved on numerous occasions this season."
Stoke's chief executive Tony Scholes added: "The discussions with Peter and his representatives were very straightforward; Peter is happy here and made no secret of his desire to stay with the club. We're delighted with the news.
"There were one or two raised eyebrows when we signed Peter from Tottenham because it was a huge outlay for us as a club at the time but he has now signed his fourth contract and has been a vital figure for us in the Premier League."
Stoke boss Mark Hughes is preparing a new contract for Peter Crouch and is sure the 37-year-old is nowhere near retirement.
The former England striker is the Potters' top scorer this season with four goals, despite being used almost exclusively from the bench.
His cameo at Brighton on Monday saw him set a new Premier League record for substitute appearances, with 143, but there is no sign of him winding down his top-flight career.
Instead, he has spoken of playing on until 40 and Hughes is happy to help with an extended stay at the Bet365 Stadium.
"I think people concentrate too much on his age, in terms of where he is in his career," Hughes told a press conference on Friday.
"It is a credit to him that he is playing at the level he is. I may be doing him a disservice saying he is 37, but he has at least two or three more years at this level. We will more than likely offer him another deal very soon. We would like to think that he will be here for a long time - I will probably speak to him today about it actually.
"Peter is an exceptional player and a great guy as well."
Peter Crouch spoke of his joy at joining some of his heroes in the "prestigious club" of players to have scored 100 Premier League goals after the Stoke striker reached the landmark in Wednesday's draw with Everton.
He is the 26th player to get to 100 Premier League goals, adding his name to a list that features the likes of Alan Shearer and Thierry Henry.
Crouch told Stoke City Player: "It is a great moment for me personally.
"It is quite a prestigious club - some heroes of mine and some players I have looked up to in the past. It is great to be among them."
He added of his celebration: "I was under so much pressure to pull out the robot - to be honest, it was a little bit rusty! I think I'll put that one away now!"
He signed a new deal with Stoke in January that runs through to the summer of 2018.