The Bosnian international, who turned 30 today, joined the club in January 2012 from 1899 Hoffenheim, and to date has scored 33 goals in 72 Bundesliga appearances as a VfB player.
Stuttgart through and through
"I love it here, so I'm delighted to see the club keep faith in me," Ibisevic enthused. "There's still much more to come from us and I want to play my part and score the goals that help bring the good times back to this club."
For his part, new VfB head coach Armin Veh was no less delighted. "In the short time that we've worked together, he's really impressed me," the 53-year-old explained. "The new deal shows that he sees his future at VfB. I couldn't be happier."
Ibisevic was on target against Argentina at this summer's FIFA World Cup in Brazil, playing in every game of his nation's first finals. VfB, meanwhile, kick-off in the 52nd Bundesliga campaign on 24 August with a trip to Borussia Mönchengladbach.