Courtney Lawes said he agreed to stay at Northampton Saints because he and the club "deserved a better ending".
Injuries have restricted the 33-year-old to just seven appearances for club and country this season.
"In terms of potential, this team is one of the best I've been involved with," he told BBC Radio Northampton.
Talks over a new deal for the forward had been going on for several weeks amid speculation Lawes could end his career in France.
However, he said the thought of finishing his career as a one-club player was "really cool" and has now made that more likely by agreeing fresh terms at Franklin's Gardens.
Lawes said his lack of fitness this season also played a big part in his decision to stay as it "wouldn't have felt right" to have left.
"I think the main thing is how badly this season has gone for me - I've barely played and barely contributed anything," he said.
"So I'm happy to stay and hopefully put that it right next season. Myself and the club deserve a better ending, so I wanted to give it that chance."
Determined to make England 100-cap club
A succession of injuries - including concussion, shoulder, glute and calf problems - have meant Lawes has made only three Premiership and three Champions Cup appearances for Saints and only one for England - the win over Wales in the Six Nations in February.
Having started Saints last two Premiership games, Lawes says he is not worried about his longevity.
"It takes you a bit longer to get going and recover but actually, physically, I've never been as strong or as quick," he said.
"In terms of what I can put out on the pitch, I'm up where I've always been.
"I've just got to manage myself a bit better and differently and, hopefully, that'll keep me on the pitch longer."
Lawes' absence this season has also meant he has had to wait for the chance to win his 100th cap for England.
He needs three more to achieve that milestone and is hoping the World Cup in France in September and October gives him that opportunity.
"I just hope I get there," he said.
"I've missed, like, eight games and I l only needed four at the start of the season. Hopefully I should get the ton and move on to, hopefully, a World Cup win."