The 27-year-old has had a stunning career revival in the second half of the season and will now remain at the Gabba until at least the end of 2016.
After playing in just five of a possible 34 senior matches following a move from Melbourne at the end of 2012, Martin's past 11 weeks have been outstanding following long-term injuries to Trent West and Matthew Leuenberger.
Since returning against the Western Bulldogs in round 12, Martin has averaged 21 disposals, four clearances and 29 hit-outs a game.
Lions general manager of football operations Dean Warren said Martin's recent impact had been remarkable.
"With injuries to Leuenberger and West, Stef was given an opportunity and he has undoubtedly taken hold of it with both hands," Warren said.
"Earlier this year we all thought Stef’s career was at a crossroads and Stef himself acknowledged his recall as his last chance, but he really has earned this new deal and has transformed himself into arguably one of the best ruckmen in the competition this season."
Twitter: @AFL_mikewhiting
