Capped once by Germany, Compper joined Leipzig in 2014 after 18 months with Fiorentina and he proved to be one of the cornerstones of the side who boasted the best record of a Bundesliga newcomer ever this season, starting 25 times at the heart of the defence.
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"I feel so happy at this club and am really, really pleased that my performances are being rewarded," said Compper, who would have featured more regularly had injury not restricted his opportunities.
His new contract was announced by the club's sporting director Ralf Rangnick on Sunday, and he said that he rates Marvin "very highly" and that his "experience and language skills make him an important figure of integration for new players in our squad."
Leaving the Red Bulls this summer, on the other hand, is Rani Khedira. "We want to find the right club for him," said Rangnick, who praised the brother of former Stuttgart midfielder Sami as "an absolute top professional."