The contract ties the dual Doig Medallist to the club through to the end of 2017.
“It’s great to be at the club for another 12 months,” the 241-game veteran said.
“Although the results aren’t going our way at the moment, I believe we’ll work through that and be better for it.”
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READ NOWThe 33-year-old, brought to the club via the 2001 rookie draft, has been sidelined since he was crushed in a marking contest during the round three Western Derby with West Coast.
Despite the injury, Sandilands was confident he could play a big part in getting the Dockers back to the peak of the table.
“I was really happy the club wanted me to go around again and I still believe I have a fair bit to contribute,” he said.
Fremantle’s general manager of player management Brad Lloyd said the club was thrilled to have one of the AFL’s most dominant players on board for 2017.
“He’s a quality person and has a strong leadership involvement at the football club and we’re absolutely delighted for him to be playing on,” he said.