Goodes made the announcement at the club's best and fairest awards in Sydney on Friday night, earning a huge ovation when he announced he would play on for an 18th AFL season.
The 34-year-old moved to 13th place on the all-time games played list this season, reaching game No.351 in the Grand Final defeat to Hawthorn.
With nine more appearances next year, Goodes can move ahead of current Swans assistant coach John Blakey's 359 games and into the top 10 in AFL/VFL history.
"I love playing football and I enjoyed 2014 as much as I enjoyed my first year," Goodes told almost 1000 guests at Sydney's Star Casino.
"So in the end it was a pretty simple decision.
"Certainly the view from mid-year, and the club has been very supportive, was if my body could hold up to it, then there was no reason why I wouldn’t continue on.
"My body feels as good as it has for some time and the fire is still burning, so I can't wait to get stuck into 2015."
The Wash-Up: Sydney Swans
Goodes had previously admitted he had moments where he doubted if he would play again as he spent a frustrating 10 months on the sideline battling a persistent knee injury.
But he returned in round six this year and then played in 20 consecutive matches, kicking 30 goals, including two in the Grand Final.
"He is a great of our club, but importantly he has been able to contribute really well for us, particularly late in the year," coach John Longmire said.
"He has his pace and he still has his hunger to compete, so we are really pleased with his decision.
"Along with Rhyce Shaw, who has indicated that he will play on next season, we are pleased to have two great leaders want to continue on their careers and be part of that drive for us to improve as a group.
"'Shawry' played some great football with us this year after returning from a knee injury.
"We were really pleased with his run and look forward to him also returning in 2015."