The decision of the 28-year-old Benin striker, who was the Black Cats' top scorer last season with seven goals, does though depend on him being granted an extended work permit.
Sessegnon's move follows the arrival at the Premier League club of both Adam Johnson and Steven Fletcher last Friday.
Sessegnon joined Sunderland in a £6million move from Paris St Germain in January 2011 and a club statement Thursday said: "Stephane Sessegnon has signed a contract extension with Sunderland AFC which will keep him at the Stadium of Light until 2015.
"The former Paris Saint Germain star arrived on Wearside 18 months ago, where he became an instant hit with Black Cats fans.
"The Benin International was named as the club's official Player of the Season last year, where he was Sunderland's top goal scorer.
"The contract extension is naturally subject to the player also being granted an extension to his current work permit."
Meanwhile Johnson insisted he'd no regrets about leaving Manchester City.
The 25-year-old winger moved to Sunderland from Eastlands on Friday after finding himself on the fringes of the Premier League champions' squad.
Johnson, who joined City from Sunderland's north-east rivals Middlesbrough during the 2010 transfer window, said: "I had the choice of going to Sunderland or City, and I probably made the right decision with the medals and the experience I have had.
"Looking back, I would probably do it again -- I suppose any young lad would in my situation then.
"But it's worked out now that I am here."
He added: "You can always look back and think it was a slightly disappointing end, but I won the Premier League, FA Cup and the Community Shield and played in the Champions League, so it wasn't all bad.
"But it was a little bit disappointing I didn't play as much as I was capable of. I owed it to myself to go and play football again and enjoy playing."
Johnson made his debut for his new club in Tuesday's 2-0 League Cup win over fourth tier Morecambe, in which he set up James McClean for both goals, and will hope for a first Premier League appearance at Swansea on Saturday.
Source: AFP
Source: AFP