Friedel, the longest-serving player at Blackburn, signed that extension that will keep him at Ewood Park through the 2008-09 season.
"I am delighted and it was an easy situation," he told the club's Web site. "I love being here and the fact that the club want me to stay on a little longer is great. Rovers showed great faith in me when I wasn't playing first-team football at Liverpool and I remember things like that. This has proved a tremendous move for me and I want to repay the club by giving of my services for as long as I can."
If he completes his new contract, he will become the only American-born player to have played for the same European club for nine straight years.
Friedel, 35, was outstanding in the semifinals of the FA Cup, where Blackburn fell to Chelsea, 2-1, in overtime. He made a key save on Ghanaian Michael Essien in the second half with the score tied, 1-1.