Fisher, 36, opted to stay with the team he helped lead to the last two NBA titles after reportedly listening to an offer from the Miami Heat, which last week signed star free agents LeBron James and Chris Bosh to lucrative deals.
While terms of the contract were not revealed, the Los Angeles Times reported it is for three years.
"At the end of the day, there's one person I could not turn away from," Fisher said in a statement. "Kobe Bryant asked me to stay but supported whatever decision I made. He and I have played together for 11 seasons, came into the league together as kids, and has been loyal to me even when others had doubts."
The 14-year veteran averaged 7.5 points and 2.5 assists in the 2009-10 regular season, but bumped up those figures to 10.3 points and 2.8 assists in the playoffs.
Celebrity Families of 2014 [PHOTOS]