Anelka, 28, has been linked with a move away from the Reebok, with several Premier League clubs interested.
But he said: "I seem to have been linked with every club in the country of late, but my heart is with Bolton.
"I am very happy with my form, the club and the manager so signing a new contract was not a difficult decision."
French international Anelka joined the Trotters from Fenerbahce last summer for £8m, signing an initial four-year deal.
However, the much-travelled forward recently hinted he could leave if the club's poor start to the season continued.
But he seems to have been convinced of their ambition, adding: "Hopefully we will prosper together because I would not have remained at Bolton if I'd thought we could not win trophies."
Bolton boss Sammy Lee added: "It is a fantastic boost that Nicolas has agreed to stay with us.
"We have worked tirelessly behind the scenes to get him to commit his long-term future to us.
"Nicolas is one of the world's best strikers and I am immensely proud and happy that he has shown such commitment to the club.
"It's also a boost for the dressing room because a team never wants to lose anybody of Nicolas's stature and presence.
"This shows our ambition to be amongst the top clubs, not just in this country but across the world of football."
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