The England international batsman, who has been with Kent throughout his entire professional career spanning 11 years, has scored more than 14,000 runs at an average of 42.33.
And Key said he is 'very happy' to commit his future to the club.
'There have been lots of rumours about me leaving the club but at no stage have I spoken or have other clubs spoken to me,' he said.
'I am and always will be committed to trying to win trophies and bring success to Kent County Cricket Club.'
Key has been continually in and around the international set-up but is regarded as something of a forgotten talent - having never cemented a regular spot in the England squad.
Nevertheless, Kent chairman of cricket Graham Johnson hailed Key's 'tremendous contribution' to Kent 'both as a player and captain', and said the county's selection had voted unanimously to retain him as skipper.
'We see him, along with some other key players, as being the core of our side so I am very pleased that he has committed his long-term future to Kent,' Johnson explained.
'He was open and honest throughout contract talks and brought a sense of fun to discussions.
'We look forward to him continuing to bring these characteristics to what he does, both on and off the field.'
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