"I love this team and feel really part of this and I love the fans and the city of Chicago," Strop said.
Strop is now signed through 2018 with a club option for 2019. He will make $5.85 million in 2018 while his club option is for $6.25 million in 2019 with a $500,000 buyout.
"I know anything can happen if I go into the free-agent market," Strop said. "There are a bunch of teams that need closers and stuff like that. I know I can close and stuff like that, but at the same time, I feel happy I'm here. I don't care the role or whatever, I just like to be here."
He is set to make $5.5 million in 2017 after the Cubs and the pitcher settled prior to arbitration. Cubs general manager Jed Hoyer said the team and Strop's agent continued to negotiate after the agreement for 2017 was reached.
Cubs manager Joe Maddon called Strop a "perfect fit" in Chicago.
The 31-year-old Strop, known for wearing his hat off to the side, is 15-20 with a 3.23 ERA in eight seasons with Texas, Baltimore and the Cubs.
Information from The Associated Press contributed to this report.