The French defender had been attracting significant interest from other clubs after a strong performance in Burnley's promotion-winning campaign last season.
Esteve has now committed to a new deal with the Clarets, and expressed his happiness and pride in signing with the club.
In a statement, Esteve said, “I’m very happy to sign another deal. This Club is very special to me, and I feel it's the best decision to stay at Burnley for my progression and to play in the Premier League.”
He also mentioned that his family shares the same feeling, and that he's proud to be part of a team with such a great coach and teammates.