- Kevin Seifert, NFL Nation
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Financial terms were not immediately available.
Driver is now signed through the 2012 season, when he will be 38.
"Now I know I'm going to retire a Green Bay Packer," he said. "It's a great feeling."
Driver, 35, who has played his entire NFL career with the Packers since they selected him in the seventh round in the 1999 draft, had been signed through this season.
Kevin Seifert covers the NFC North for ESPN.com. Information from The Associated Press contributed to this report.
Green Bay Packers receiver Donald Driver signed a two-year contract extension Friday.