In his third season with the Stampeders, Bennett was a West Division all-star last season with 44 tackles and three interceptions.
"Fred has established himself as an important part of our defence and as one of the best cornerbacks in the league," said Stampeders head coach and general manager John Hufnagel. "I'm pleased that he chosen to make this commitment to the organization and look forward to more good things from him in the seasons ahead."
Bennett signed with the Stampeders in 2012 after NFL stops with the Houston Texans, San Diego Chargers, Cincinnati Bengals and Arizona Cardinals.
He has never missed a game during his three-year Stampeders career, and has recorded 129 tackles, five special-teams tackles, nine interceptions, one fumble recovery and five forced fumbles in 54 regular-season contests.
"Winning a Grey Cup in 2014, the first championship of my career, was an amazing experience," said Bennett. "I'm thankful to be a part of a great organization. It's the true meaning of family."