The 28-year-old has put pen-to-paper on a contract that will see him play for Quins until the end of the 2014/15 season.
Monye, who played for the British and Irish Lions on their tour to South Africa, has scored 73 tries in 169 appearances for Quins since his debut in 2002.
And he had no hesitation in extending his stay at the Stoop by a further three years.
"I have so many wonderful memories here at Quins, but what I think I am most proud about is the way the club has bounced back from adversity - bloodgate and relegation; both of these negatives have seen us become stronger," he said.
"Of course, reaching the semi-finals of the Premiership in 2009 and, more recently, the win against Munster and Stade Francais in the Amlin Challenge Cup, are moments I will treasure, along with making my debut for England and the Lions.
"I am so proud to be a part of this club, and I am looking forward to extending my time here by at least another three years."
Director of rugby Conor O'Shea hailed the commitment and dedication of Monye.
"Ugo is a one club man and that is a rarity in modern day rugby, but he is also an example of what we want to have here at the club," said O'Shea.
"He was frustrated to miss out on the RWC and then to pick up the injury that has kept him out for a number of weeks after starting the season so strongly. We know in Ugo we have a player who has got an X factor, with and without the ball, that any team would want.
"By signing this contract he is not only committing to us and what he believes we can achieve in the coming years, he is also setting his stall out to be part of the RWC squad in 2015. We are delighted, as I am sure every single supporter of Harlequins will be with this news."
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