Although the team didn't announce terms of the deal, Branch said he signed a three-year extension.
Branch, who turns 29 on Sunday, was set to become an unrestricted free agent following this season.
"It feels good, just knowing that my future is secure for a little bit and not just wondering what's going to be happening in the next couple months. That's a load off, as well," he said.
After signing a one-year deal in April, Branch has become fixture on the Bills' defensive line. Following a season-ending injury to Alex Carrington, the 325-pound Branch has started 12 games, tallying 35 tackles.
Carrington is also set to become a free agent in March. Branch's re-signing makes it less likely that Carrington will return, as the Bills now have their entire starting defensive line under contract for next season.