The 32-year-old was an All Australian in 2012 and has been one of the greatest players in Freo history.
He will continue his 238-game AFL career into a 16th season.
Fremantle general manager of player management Brad Lloyd said the club was delighted to have McPharlin play another season.
“Luke is a champion performer and one of the most respected players and leaders at the club,” he said.
“He’s a tremendous athlete and a complete professional, so we’re confident he will play at the high level we’ve come to expect from him.”
Originally drafted by Hawthorn in 1999, McPharlin joined Fremantle for the 2002 season via a trade and has now played 226 games for the club.
