The 32-year-old, who is set to play his 250th game on Saturday against the Sydney Swans, had flagged his intention of playing on beyond 2014 earlier this season.
He told AFL.com.au in July he was yet to make a decision on his playing future but would wait to see how his body was feeling towards the end of the season.
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The contract extension will see the former skipper remain at the club until the end of season 2015.
“I feel like I still have something to offer my team-mates, the Club and the fans,” Newman said.
“I haven’t had too many injuries along the journey, so the body is feeling good. Being able to string together 16 games this season so far has given me confidence that I have some good footy left in me.
“More importantly, I still love the game, mentally I’m up for the challenge, and I want to be part of what Richmond is building towards.”
Newman was drafted at pick No.55 in the 2000 NAB AFL Draft and made his debut in 2002.
“We are thrilled Chris has decided to play on for another season,” Richmond’s General Manager of Football, Dan Richardson said.
“A player of his standing at this football club, with his invaluable experience, will continue to be a great asset to the playing group in 2015.
“Chris has proven he still has the ability to play consistently well at the highest level, and his leadership on and off the field will continue to drive the Club forward.”
