The wide receiver, selected out of Kansas State in the second round of the 2008 draft, has been one of the Packers' most consistent performers in recent years, and was part of the team that won the Super Bowl in the 2010-11 season.
Nelson has over 4,500 receiving yards and 36 touchdowns to his name in six seasons in the NFL.
Last season the 29-year-old posted career-best totals in receptions and yardage, making 85 catches for 1,314 yards.
And he has now been rewarded by the Packers with what is believed to be a four-year extension worth $39million.
"Jordy's hard work and dedication has made him a good player, teammate and a core member of this team," Packers general manager Ted Thompson said in a statement on their official website.
"We are pleased to come to an agreement that will extend his Packers career."
Head coach Mike McCarthy added: "Jordy Nelson is an outstanding football player and a great ambassador for the Green Bay Packers.
"It's something that everybody's excited about and [I'm] glad to see Jordy will be here for some time.
"Jordy's so consistent and he shows up each and every day, performs at a very high level consistently and he's the ultimate pro."
Meanwhile, the San Francisco 49ers, who beat the Packers in Green Bay in the play-offs last term, have confirmed that running-back Kendall Hunter sustained a torn anterior cruciate ligament in his right knee.
The injury was suffered as Hunter caught a pass in the second practice session of their pre-season training camp.
Hunter has served as a dependable deputy to starting running-back Frank Gore in his three seasons with the 49ers.
However, he is now set to miss the entirety of the upcoming campaign, with rookie second-round pick Carlos Hyde arguably the leading candidate to replace him as Gore's back-up.


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