The experienced defender's current deal expires next June, but after meeting with club president Jose Maria del Nido the 34-year-old confirmed he will be staying at El Estadio Sanchez Pizjuan.
A statement on the club's official website revealed that agreement over a new contract was reached almost immediately, while Alfaro added he was keen to end his career with the Primera outfit.
"Pablo Alfaro will continue at Sevilla FC until whenever he wants," read the statement.
"(Agreement) was reached within a minute, which was how long it took for the captain to express his desire to continue with Sevilla and for the club to decide it was appropriate."
Alfaro declared: "I will be here until the gods want me to.
"I thought about things and I reached the conclusion that it was best that I stay here rather than go any other place.
"One of my desires was to end my career here, and now I will be able to do that."
