Terms of the deal were not announced on Saturday, but Loyd's agent, Jade-Li English of Klutch Sports, told ESPN's Andraya Carter that the deal is for $241,984 the first season and $249,032 in the second. That is the supermax salary for the first year and just under it for the second.
The deal will keep Seattle's pillars with the franchise as it continues a rebuild following the departure of Breanna Stewart and retirement of Sue Bird.
With one game left in the regular season, Loyd has already set a franchise record for points scored in a season. She's leading the league in averaging a career-best 24.6 points per game heading into Sunday's finale against Los Angeles. She's scored at least 30 points 12 times this season, including a 41-point game against Minnesota in late June.
"It's been special for Seattle to witness Jewell compete for championships and rise to be one of the best in the game. She is a franchise player, and we are excited to continue to build our future around her," Storm president and CEO Alisha Valavanis said.
Loyd, 29, has spent her entire WNBA career with the Storm after being the first overall pick of the 2015 draft. She's been part of two championship teams with the Storm, but the departures of Bird and Stewart left Seattle in a rebuilding phase this season.
"This has been a special year for Jewell and I'm excited it caps off with a commitment to continue to build her legacy in Seattle," Seattle coach Noelle Quinn said.
The Associated Press contributed to this story.