Shiel, who has begun the season in stunning form, says his status as a foundation player at the Giants, and the club's performances this year, were major factors behind his decision to stay.
"My dream is to win a premiership one day and I believe I can achieve that here at the Giants," Shiel said on Thursday.
"I definitely feel privileged to be one of the first ever Giants' players, and hopefully we can achieve good things at the club."
"Obviously I want to make sure that we're heading in the right direction on the field.
"Off field we're building a really good bond at the club, I've made some really good mates here, so there's many reasons why I wanted to stay.
"It would be silly to leave a club that’s on the rise and especially when I've done the tough times in the early years."
Shiel, plus teammates Adam Treloar and Stephen Coniglio in particular, have been under constant scrutiny over their contract situations this season, but the silky left-footer says it hasn't affected his footy.
Statistics show that to be on the mark, with the 22 year-old having a breakout year. He leads the Giants with almost 29 possessions per game and should be amongst the early leaders in the Brownlow Medal count.
"Personally it hasn't bothered me, there hasn't been much pressure here in Sydney, we sort of get away with it," Shiel said.
"Within the club there's no pressure on any of the boys who are un-contracted - everyone's situations are different so I'm sure they'll go through the processes."
GWS coach Leon Cameron was obviously delighted to lock away one of his young stars, and believes Shiel's commitment sends a strong message to the rest of the competition.
"It just confirms again that we're on the right track, creating a really good culture," Cameron said.
"There's no doubt there was a number of clubs who were after his services, but he sees a really great future at our footy club.
"He's one of the young leaders, not only is he a fine young footballer, he's a fine young gentleman and well respected at our footy club."
Shiel joins a long list of Giants including co-captain Phil Davis, star forward Jeremy Cameron, and young guns Devon Smith and Will Hoskin-Elliott, to pledge their loyalty to the club this year.
Midfielders Treloar and Coniglio are now on the GWS hit list. Treloar is expected to be heavily targeted by Victorian clubs, while West Australian Coniglio will be of massive interest to the Eagles and Dockers.
His club might not be able to match any big offers for the pair financially but Cameron is confident of keeping them in Giants' colours.
"They clearly want to stay as well. When the boys look at me in the eye and (tell me) they want to be part of our footy program, and a part of the Giants, I take that on face value."