McLaughlin was set to be out of contract this summer but the 27-year-old will now remain at the Pirelli Stadium until June 2017.
“With any successful promotion-winning team, you need that goalkeeper and steady influence at the back who’s there when called upon,” said Burton’s goalkeeping coach Gavin Ward.
“The team is doing well of course but you have to have a good goalkeeper.
“Jon has certainly done the business in that respect.”
McLaughlin joined Burton from Bradford last summer and made 48 appearances this season as Albion won the League Two title and clinched promotion.