Mustard, 27, was named the Pro40 Division One MVP in 2009 and also claimed the most dismissals in Durham's triumphant County Championship campaign.
The gloveman has also made ten one-day appearances for England, averaging a shade over 23 with a high score of 83 against New Zealand in 2008.
On signing the contract, Mustard said: 'It's been fantastic to be a part of Durham's success over the past few seasons and I wanted to demonstrate my commitment to the club for the coming years by signing on the dotted line for an extra year.
'I've developed a lot over the last season and I feel that my contribution to the side is only going to improve.'
Mustard averaged over 50 with the bat in the NatWest Pro 40 last season, and Durham head coach Geoff Cook was quick to heap praise his performances.
'Phil has matured a great deal over the season, not only with his keeping but as a batsman,' he said.
'He has taken on the responsibility of opening the batting in the one day competition and Twenty20 Cup and delivered some superb results.
'He is undoubtedly an excellent asset behind the stumps as well as a great character to have in the dressing room.'
Durham chief executive David Harker was also pleased to see Mustard had put pen to paper.
'Phil is one of a number of players who have come up through the Academy ranks to become a vital part of our team and we are delighted to be able to confirm his long term commitment to the club,' he added.
The gloveman has also made ten one-day appearances for England, averaging a shade over 23 with a high score of 83 against New Zealand in 2008.
On signing the contract, Mustard said: 'It's been fantastic to be a part of Durham's success over the past few seasons and I wanted to demonstrate my commitment to the club for the coming years by signing on the dotted line for an extra year.
'I've developed a lot over the last season and I feel that my contribution to the side is only going to improve.'
Mustard averaged over 50 with the bat in the NatWest Pro 40 last season, and Durham head coach Geoff Cook was quick to heap praise his performances.
'Phil has matured a great deal over the season, not only with his keeping but as a batsman,' he said.
'He has taken on the responsibility of opening the batting in the one day competition and Twenty20 Cup and delivered some superb results.
'He is undoubtedly an excellent asset behind the stumps as well as a great character to have in the dressing room.'
Durham chief executive David Harker was also pleased to see Mustard had put pen to paper.
'Phil is one of a number of players who have come up through the Academy ranks to become a vital part of our team and we are delighted to be able to confirm his long term commitment to the club,' he added.
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