The former Brisbane Roar midfielder, 24, has only made 32 league appearances for the Eredivisie side since joining them in July 2010.
 
Sarota, capped three times by the Socceroos, is recovering from a torn cruciate ligament which is expected to keep him sidelined until the second half of the 2013/14 campaign.
 
His contract was due to expire in 2015 but the club have decided to extend his stay, impressed by the development he has made and his potential.
 
"I'm very proud to have re-signed with FC Utrecht. Great club and people," Sarota tweeted after signing his new deal.
 
Sarota hopes to earn a place in the Australia squad for the 2014 World Cup after the Socceroos booked their place in Brazil with a 1-0 win over Iraq on Tuesday.