"I've been here three seasons now and good things have happened," said Armitage, who joined Jonny Wilkinson and co from London Irish in 2011 and currently plays alongside brothers Delon and Guy on the Côte d'Azur.
"We've won the Heineken Cup and I hope we continue and win the Top 14 this season."
Armitage featured in all nine games en route to Toulon's maiden Heineken Cup crown last term, starting seven times, including the tournament's showpiece event against ASM Clermont Auvergne at the Aviva Stadium.
The 28-year-old enjoyed an incredible first two seasons in France, winning Midi Olympique's best foreign player award this time last year after guiding Toulon to the 2012 Amlin Challenge Cup Final and the Top 14 semis.
He was equally influential in Toulon's march to continental domination and runners up spot in the French Championship in May of this year and, although he has faced a tougher battle for a starting spot so far this season, he has been involved in both Heineken Cup fixtures against Glasgow Warriors and Cardiff Blues.
Those two appearances took his European tally to 42 games ahead of the December double header with Pool 2 leaders Exeter Chiefs, with 29 coming in the Heineken Cup and 13 in the Amlin Challenge Cup.
He currently has five England caps to his name but hasn't played for his country since 2010, though, and his decision to remain in France will make it difficult to add to that tally given head coach Stuart Lancaster's reluctance to select foreign-based stars.