The 34-year-old has been a model of consistency since joining the team at the start of the 2012 season and his selfless brand of powerful riding has helped secure numerous race wins.
The American’s experience and laid-back demeanour make him a great team-mate, as well as a mentor for the younger riders on Team Sky’s roster.
Team Sky rider Danny Pate said: “I enjoy riding for Team Sky and I feel like I have a place that I’m really comfortable in, yet at the same time there is still a challenging platform to ride well.
“We’re the number one team in the world right now. The guys don’t just rest on that. The team is always moving forward and trying to find the next improvement.
“I like my position on the team. It’s not the team leader spot – that’s just not what I am. I enjoy what I do and I’m happy that the team values the work I do for them.”
Sky Pro Cycling Team Principal Sir Dave Brailsford said: “We’re delighted to have got a new deal in place for Danny. Everyone in the team knows just how hard he works and it’s no coincidence that he’s been part of some our best stage race performances.
“He is a great personality to have in the squad and as we continue to target success he is undoubtedly going to be a key asset.”