The Belgium international, who became a full Roma player last month after the Serie A club bought Cagliari's share of the player, had been linked with Real Madrid, Manchester United and Liverpool.
Nainggolan's previous contract had been due to expire in 2018, but he has now put pen to paper on a deal that will keep him at the Stadio Olimpico until 2020 and spoke of his delight at committing to the Giallorossi.
"I'm delighted to have extended my stay at this club," he told the club. "I'll do everything I can for this shirt to repay Roma for the faith they've shown in me.
"My aims for this year? I hope to finally win the Scudetto or if not at least another trophy."
Roma could be set to welcom Kevin Strootman and Leandro Castan back from injury, which Nainggolan feels will be a welcome boost for the team.
"I'm really pleased for both of them. Castan had a very unusual injury and it was hard to know how it was going to turn out. He's getting close to 100% again now and everyone on the team is delighted for him.
"Having Leo back will be a massive bonus. Kevin was unlucky because he injured the same knee twice but he's on the road to recovery as well now.
"It's great to see the two of them so eager to get back out there on the pitch and help us."
Having established himself as an integral part of Roma's first team, the 27-year-old made 46 appearances in all competitions last season as Rudi Garcia's side again finished second in Serie A behind Juventus.
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