The 32-year-old was set to become an unrestricted free agent at the end of the season but his love for the club and confidence in his body has made it an easy decision to extend his contract for another 12 months.
Bouyed by the exciting direction the club is heading, Murphy said he was pleased to continue his career at the Whitten Oval.
"I'm still enjoying my footy and I obviously love this place so to get another contract, I'm really happy about it," Murphy said on Thursday.
"I love seeing how the young guys are shaping our footy club so I'm keen to come along for the ride.
"The success, there's going to be plenty of shades of what it looks like, but I think we showed on the weekend that there are some exciting times ahead."
The recent retirements of St Kilda champion Lenny Hayes and 2010 Collingwood premiership skipper Nick Maxwell prompted Murphy to contemplate his own football mortality, but he said retirement was never at the forefront of his mind.
"There's a few of my generation who have rounded up which gets you thinking about footy and time," Murphy said.
"But personally I feel good and optimistic about where we are headed as a footy club. I feel I still have something to offer."
In his 15th AFL season, Murphy has shown no signs of slowing down, playing every game this year, and averaging 20 disposals per game.
The defender's run and carry makes him such a vital cog in the developing Bulldogs side, with Murphy ranked No.1 at the club for rebound 50s.
Coach Brendan McCartney said Murphy's form made it an easy decision for the club to re-sign him.
"He's an all-time great here," McCartney said.
"It's the best I've seen Bob play in two-and-a-half years. He's beating his man, he's winning crucial contests and using the ball as well as ever.
"He's just a high quality person. He has great values, consistent behaviours, and has an undeniable love and passion of this club."
