Schindler, 28, has agreed to a three-year deal after winning the club's Player of the Year award last season.
The German centre-back excelled for the 'Terriers' as they managed to avoid relegation from the Premier League last season.
He was also key as the club were promoted to the top division via the play-offs in 2016/7, as he netted Huddersfield's winning penalty in the final.
Manager David Wagner has reacted to the news, saying "We all knew that Schindy was a top performer after his first season at Huddersfield Town, but his quality really shone through as we played in one of the best leagues in the world last season.
"He took to the Premier League as if he has played in it all his life.
"We're absolutely delighted that he has signed this new contract at the club. It's as good as any news or incoming that we had success with during the summer transfer window."
Schindler spoke to 'Huddersfield TV'. "I am very happy and grateful. It shows me as well that I did a lot of things right in the last season.
"I felt really good from the beginning when I came here and it is great what the club has achieved in a short period of time."