Kerr, 25, whose current contract expires at the end of 2009, has been linked with several clubs including the Brisbane Lions, St Kilda, Carlton and the Sydney Swans.
Today’s announcement keeps the midfielder at West Coast beyond next season. It also robs trade week, which begins on Monday, of one of its most intriguing storylines - not that the Eagles will be concerned by that.
The club has not revealed the length of Kerr’s new contract, although it has previously it was reluctant to offer him anything more than a three-year extension.
In a statement, chief executive Trevor Nisbett was confident Kerr would now remain a one-club player.
"With Daniel Kerr ... re-committing beyond 2009, everything is taking shape as we start to plan our rise back up the table,” Nisbett said.
“It is fantastic to have Daniel continue with us. He is a quality player who can offer important on-field direction to so many of our younger players.
"He is one of our best ever players, is a life member and we are delighted that it looks as though he will now finish his career with the West Coast Eagles.”
Kerr was awarded life membership at the Eagles at last night’s club champion awards.