The Northern Irishman has struggled with injuries this season and has been out since the start of April.
With a lot of players edging towards the end of their contracts it was important to tie the 25-year-old down ahead of an intriguing summer window at the club.
Thompson took to Instagram to express his emotions after his new terms were finalised.
“Looking forward to the future.
“Appreciate the messages everyone!”
The Potters have underperformed this season, especially after the promise they showed in the opening months of the campaign, heading into their fifth season since relegation from the Premier League, the club will not be able to operate as ambitiously as they once did in this upcoming transfer window.
With the likes of Tyrese Campbell and D’Margio Wright-Phillips coming through, there are reasons for optimism at the club and ensuring they keep hold of some of the talented players on expiring contracts will be important in the short term.
Michael O’Neill enters the final year of his contract next term, and will need to build a far more credible play-off push to earn a new one.
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At 25, Thompson is a player who is still improving at Championship and international level, and he certainly offers a point of difference to the current midfield contingent.
Nick Powell and Mario Vrancic’s contracts expire this summer and with Romaine Sawyers’ loan ending as well, O’Neill will be looking to freshen up the middle third before next season begins.
Thompson is a genuine box-to-box midfielder and contributes just as much in and out of possession.
With the inspired signing of Lewis Baker in January, Thompson could be someone to come in and do the dirty work while the former Chelsea man takes on additional attacking responsibilities in 2022/23.