He told the Blades official website (www.sufc.co.uk): "I'm obviously delighted to sign an extension to my current deal.
"I will not deny that I was flattered to be connected with other clubs, but I feel Sheffield United are moving in the right direction and I've thoroughly enjoyed my time working here."
Warnock added: "I'm delighted that Kevin has committed himself for two more years, like myself. Whilst we feel that the club is doing well at the moment, there is still so much more to come from this group of players.
"We both believe that we can take the club a lot further - hence our commitment to the cause."