19 May, 13:05
With major injury problems in the back-row the versatile Newby has starred on the openside this season although the majority of his career he has played on the blindisde or at Number 8.
The 31-year-old has already passed 50 appearances for the English giants and collected two Premiership winner's medals in his time in the Midlands.
"I'm enjoying life on and off the field in Leicester and my decision to stay was a relatively easy one," said Newby.
"We've got a good squad of players and a good set-up at the club. The club has been great to me and my family since I got here and I see loyalty as a strong value."
Tigers director of rugby Richard Cockerill said: "Newbs brings a lot to the squad in terms of his ability across the back-row positions and he's been in very good form for us.
"We always wanted him to stay on at the end of his current contract and we're very happy that he has signed."
Newby has played in all of his side's Heineken Cup games to date this season and will be looking to help the Tigers qualify for the knock-out stages with a key fixture away to the Scarlets up next in Round 5 (Saturday January 15, 17:45)