The 33-year-old fullback has been in good form this season and is currently the NRL's leading point-scorer this season with 128 points.
"Since day one, everyone at the Roosters has made me and my family feel welcome and at home, so that's a big reason I'm pleased to be extending my time here," Gordon said.
"From a footy perspective, I still feel like the body is really good and I've got something to offer. I'm enjoying my footy and being part of the team here at the Roosters."
Gordon is expected to switch to the wing next season with Wests Tigers and NSW Blues fullback James Tedesco arriving at the Roosters in 2018.
Photo by: Robb Cox/NRL Photos.Michael Gordon will play on with the Roosters in 2018.