The announcement comes at the end of a successful first year in the Team Sky colours for Swift, who clinched five sprint victories in the first five months of the season.
Twenty-three-year-old Swift also earned his first ever selection for the Tour de France in the summer.
He spoke this week of his delight at securing a new contract.
“I’m delighted with the way things have gone over the last two years and am over the moon to have signed this new contract,” he said. “The support the team have given me both on and off the bike has been absolutely fantastic and I just hope I can keep progressing now and win more bike races.”
“We’re a really tight-knit group here and I’m really looking forward to seeing us push on and grow as a team.”