Chabal was Philippe Saint-Andre's first signing for Sale in 2004 and in the last three years the powerful number eight has become a cult hero at Edgeley Park.
During the World Cup, Chabal attained superstar status in France but has rejected the idea of a return home because he is not comfortable in the glare of publicity.
After all, Chabal is a 6ft 3in, 17 stone forward who is happy to drive around in a Smart car.
"I have enjoyed my time in England and am able to get on with playing rugby which I enjoy," said Chabal.
"If I lived and played in France, I think my wife would go crazy with all the supporter attention I receive there."
Chabal's grizzly caveman image was ubiquitous during the World Cup, adorning adverts and newspapers even though he was rarely used in France's starting XV.
Sale lost Jason Robinson to retirement in the summer but recruited ambitiously with New Zealand centre Luke McAlister joining after the World Cup on a two year-contract.
Sale chief executive James Jennings said: "Sebastian Chabal's decision to stay at Sale Sharks is testament to how world-class players like 'Seabass' view Sale Sharks as a more attractive option than other leading European clubs.
"Sebastian Chabal is currently the best known and most popular sports personality in France, but he has opted to commit his future to Sale Sharks for the next two years at least.
"We are delighted that Seabass is staying with the club and look forward to enjoying many more seasons of his dynamic and attacking style of play."
Chabal's new contract includes the option of a third year.
Saint-Andre added: "He will play a big part in the future of Sale Sharks and we are all delighted that he has signed a new deal.
"He always gives his best and although he had received big money offers to go and play in France, he has committed his future to Sale Sharks."