The new deal will keep Phillips, who has spent his entire 11-year CFL career in B.C., with the Lions through the 2016 season.
The CFL club also announced that kicker Paul McCallum will return for his 23rd CFL season, 12th with the Lions.
"Both Paul and Ryan remain integral parts of our team as they continue to perform at a high level on the field and play a vital role as respected leaders in the dressing room," Wally Buono, the Lions vice-president of football operations, said in a statement.
Phillips has made 180 consecutive appearances with the club since signing as a free agent in 2005. The Seattle native is a four-time CFL all-star and last season had a team-high three interceptions with 39 tackles.
Last season, the 45-year-old McCallum hit 38-of-42 field goals for a league-best 90.5 per cent success rate.