The Wearsiders confirmed the 24-year-old, who was out of contract at the end of the season, has signed a new deal which ties him to the club until 2016.
“I’m delighted to have signed the new deal,” Cattermole said.
“The gaffer made it clear at the end of last season that he wanted me at the club and I’m glad to get it done.
“If you look at the signings we’ve made over the summer, I think it shows the club’s ambition. I think this is the best place for me.”
The midfielder joined Sunderland from Wigan in 2009, having started his career at Middlesbrough.
He was appointed Sunderland captain at the start of the 2010-11 season when replacing Lorik Cana and has made 73 Premier League appearances for the club.
Cattermole, famous for his abrasive style of play, has also been dismissed five times in a Sunderland shirt.