Stone has taken 34 wickets for Nottinghamshire since joining the club from Warwickshire in 2023.
Across his career, which started at Northamptonshire, the fast bowler has claimed 319 wickets in all formats.
He has featured 16 times for England, with five of those appearances coming on the Test stage.
“The backing of Peter Moores, Kevin Shine, and all the coaching staff has enabled me to continue to develop, and I still have aspirations to play at the highest level,” Stone said.
The new deal for Stone comes after the 22-year-old all-rounder Sammy King and wicketkeeper Dane Schadendorf, 23, were released by Notts.
Schadendorf made 30 appearances across first-class and List A competitions, while King made eight appearances in white-ball games.