The two-times Brownlow medallist and Sydney games record-holder has agreed to a new contract through to the end of next season.
Goodes, 33, announced his new two-year deal in Sydney on Friday afternoon, while also declaring he had decided to stand down from the Swans captaincy.
In a significant signing coup for the reigning premiers, brilliant on-baller Kieren Jack has also agreed to a new contract, along with replacing Goodes as co-captain.
Jack, 25, celebrated his captaincy appointment with a new three-year deal.
Jack's deal takes the clearances expert through until the end of the 2015 season.
Exciting contract extensions for two of Sydney's and the AFL's most accomplished and influential potential match-winners is on the back of a new deal this week for another decorated Swan Ryan O'Keefe.
O'Keefe, 32, also extended his commitment to Sydney until the end of next season.
Sydney management had been tipped to face fierce salary cap juggling on the back of signing controversial gun recruit Kurt Tippett from Adelaide late last year.
The powerhouse scoring force is believed to be on around $800,000 a season for the next five years.
Goodes was always expected to conclude his highly decorated career at Sydney and will be in the region of 370-odd games if he plays until the end of 2014.
One of the most durable and versatile athletes in the league, he made his debut way back in 1999 and has collected two premiership medals, as well as two Swans fairest-and-best titles and four All-Australian selections through his 319 games.
He has been Swans co-captain since 2009 and signalled potential for such a distinguished career when he was awarded the AFL's prestigious Rising Star award in his debut season.