The left-arm spinner, who arrived at Edgbaston from Sussex 12 months ago, played a key role with the ball and also made contributions with the bat as the Bears won both the County Championship and Bob Willis Trophy.
Briggs has seen an extra year added to his contract, which now runs until 2024.
Warwickshire director of cricket Paul Farbrace said: “Attracting a player of Danny’s quality to the squad at the beginning of last season was fantastic for everyone associated with the club.
“He came to win trophies and to push for England selection and he’s certainly done both in this first season.
“We’re also delighted that Danny has now been able to make his family home in the area, given that he has a huge role to play for Warwickshire at least the next three years.”
Briggs took 33 wickets for the Bears at 21.87 and scored 413 runs, including three half-centuries, as the Bears won the title for the first time since 2012,
The 30-year-old also took 15 wickets as the club reached the quarter-finals of the Vitality Blast and earned an England call-up for the one-day series against Pakistan. Briggs said: “Personally and professionally, the move to Warwickshire really couldn’t have worked out much better.
“Winning the Championship this year has been one of the highlights of my career, but this squad is only going to get stronger, given the number of young players who are coming through.”