Sheridan's mighty scrummaging performances in France enhanced his reputation as arguably world rugby's finest prop.
He said: "I am very happy at the club and living in the north-west.
"We have a great bunch of players at the club, and I have a lot of respect for (rugby director) Philippe Saint-Andre and (coach) Kingsley Jones.
"It was flattering to know that other clubs wanted to talk to me - but I didn't want to move anywhere else."
Sheridan's wrecking job on the hapless Australian front row in Marseille underpinned England's World Cup quarter-final victory over the Wallabies.
At 28, he will be a cornerstone of the England side leading to the 2011 World Cup in New Zealand.
Saint-Andre said: "We are keen to develop our own youngsters at the club - but we are also determined to keep hold of our world-class players like Andrew."
Sheridan joined Sale from Bristol in 2003, having been initially converted from a lock to prop while playing for the west country club.