The 24-year-old England fast bowler, who arrived at Trent Bridge from Leicestershire in 2007, is still on an ECB central contract.
His new deal with Notts, which runs until 2013, will only come into effect should he lose his England deal.
"We fully expect Stuart will maintain his England place for years to come but this re-affirms his commitment to us," said director of cricket Mick Newell.
Broad has made just a single one-day appearance, as well as playing three games in the Twenty20 and seven County Championship matches in his four years at Trent Bridge.
But he may be due to get in a few early season appearances once he has recovered from the side strain that forced him home early from England's unsuccessful World Cup adventure last month.Continue reading the main story
Although his county apperances have been limited, he has always performed exceptionally well when he's turned out for us.Mick Newell Nottinghamshire coach
And Notts can only hope that Broad, who played for them in the FP t20 finals day at the Rose Bowl last August, will hope that he turns in a repeat of the match-winning performance he produced on his last County Championship appearance.
Broad took 11 wickets in the match in his side's 10-wicket win over Warwickshire at Edgbaston in July, claiming a career best 8-52 in the second innings.
"We knew he was in the England selectors' thoughts when we signed him in 2008," added Newell.
"Although his county apperances have been limited, he has always performed exceptionally well when he's turned out for us."
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