The 35-year-old, whose previous deal was due to expire in the summer, has put pen to paper on a new one-year deal until June 2015.
Important on and off the field
"I'm feeling fit again and am delighted to be able to play another year on the Bundesliga and with Borussia," said Daems, who joined Borussia in 2005 from Turkish club Genclerbirligi Spor. The former Belgium international has played 224 games for the Foals and worn the captain's armband for five years, longer than any other Gladbach player before him.
"Filip is our skipper on the field and he's an important figure off it too," said the club's sporting director Max Eberl. "It's important for us to have him for next season too."
Daems is also the club's longest-serving foreign player and the 2014/15 season will be his 11th with the Rhineland club.