The team announced the signing Saturday.
Bishop, a Vezina Trophy finalist last season, went 37-14-7 with a 2.23 goals-against-average in 63 games. He set team records for single-season wins and goals-against average.
Bishop has played in 108 games with the Lightning, Ottawa and St. Louis, going 55-31-11 with eight shutouts.
The extension runs through the 2016-17 season.