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The 28-year-old has played eight tests for the All Blacks and is only a few games off reaching his 100th cap for the Crusaders.
He said there had been interest from overseas clubs but the decision to stay and play his rugby in New Zealand and Christchurch for 2018 was relatively straightforward in the end.
"I was born and raised here in Christchurch, and now I am bringing up my own young family here. I feel incredibly fortunate to be able to live here and play for the teams I love, so it was a pretty easy decision to re-sign with NZ Rugby and the BNZ Crusaders for 2018."
Todd returns from a recent calf strain to play the Force on Friday. It will be his 97th game for the Crusaders.
" 'Toddy' epitomises everything you want in a team man," All Blacks coach Steve Hansen said.
"He puts the team first, works incredibly hard at his game, deserves and appreciates every chance he gets and plays outstandingly well when he gets those opportunities. We congratulate him on his decision to stay."