The Serbia international’s contract was set to expire at the end of the season but the Blues opted to extend the experienced right-back’s deal by one season.
“This is my home and there is no other place I would rather play,” Ivanovic was quoted as saying by the BBC.
Ivanovic has endured a torrid campaign at Chelsea this year after helping the Blues to the Premier League title last season. The 31-year-old has been heavily criticised for his displays in defence.
Ivanovic – who joined Chelsea from Lokomotiv Moscow for £8.4 million back in 2008 – has made 20 appearances for Chelsea this season.
Chelsea are currently in 14th position in the Premier League while Galatasaray find themselves in third place in the Turkish Super Lig. The Lions take on Osmanlispor this weekend while Chelsea face their London rivals Arsenal at the Emirates Stadium.