Potter has been an integral part of Karl Robinson's side since joining from npower League One rivals Sheffield Wednesday in the summer on an initial 12-month deal.
Boss Robinson was keen to keep hold the 27-year-old and believes the Dons have a bright future with Potter in their ranks.
"I am over the moon. I fought hard to get him over the summer so to acquire his services for another two seasons is a remarkable achievement by the club," Robinson said. "He is a no-nonsense player and he is a tremendous athlete and tremendous professional.
"He is key to our success; the future is bright when you have the likes of Darren Potter committing his future. He puts his heart and soul into matches and when he is not there we miss him. In the dressing room he is a very strong character and the players know how good he is. This is a big boost for us all."
Potter, who has scored three goals in his 43 appearances for the club, added: "I am delighted to sign. I have enjoyed my football since I have been here. We play good, attractive football and the club is on its way up. Going forward we have a good structure and base to the club and I think we do everything in the right way."