Mundy, 35, will enter his 18th season next year after an impressive 2020 campaign where he finished fifth in the club’s best and fairest count.
The seasoned midfielder has played 332 games with the Dockers since joining the club in the 2003 National Draft and will be in contention to break Fremantle legend Matthew Pavlich’s all-time games record in purple of 353 games.
“It’s a big relief. My wife and family and I are obviously thrilled to have some clarity around our future now. 2020 in general has been a time of more questions than answers, so it’s good to have it signed,” Mundy told the club website.
“I’ve always had a really healthy dose of competitiveness that gets me through.
“I think in the last phase of my career, I’m still trying to improve on little aspects and trying to get better each session and each pre-season. There’s certainly a driving force within me still.
“To be able to go out on the field and perform the way that I did throughout 2020 gives me a lot of confidence and I really enjoy doing it.”
Mundy said that helping the Dockers return to the top eight was a major factor in re-signing with the club.
“I’m just here to perform, play my role within the team and do my part to take Fremantle back to success and finals football,” Mundy said.
“The sky’s the limit and anything is possible within games and within seasons. There’s a lot of us who have been around a fair while and (we know) those benefits that we saw out of last season aren’t guaranteed.
“We’re going to have to fight and scrap for them and I’m fully confident we have a group that will.”