Bolton chalked up their first win of the season at the weekend by beating Reading with Anelka making it three goals in four games.
He said: "I seem to have been linked with every club in the country of late but my heart is with Bolton.
"I am very happy with my form, the club and the manager so signing a new contract was not a difficult decision.
"Hopefully we will prosper together because I would not have remained at Bolton if I had thought we could not win trophies."
Anelka's decision is a marvellous boost for manager Sammy Lee ahead of the home game against Everton on Saturday.
Lee said: "We have worked tirelessly behind the scenes to get him to commit his long-term future to us.
"Nicolas is one of the world's best strikers and I am immensely proud and happy that he has shown such commitment to the club.
"It is also a boost for the dressing room because a team never wants to lose anybody of Nicolas's stature and presence."
Lee added: "This shows our ambition to be among the top clubs, not just in this country but across the world.
"Nicolas is one of the most sought after strikers in the world and I am delighted that he will continue to wear the Bolton shirt.
Don't know if Anelka's presence in the dressing room is as positive as Sammy Lee implies as he's known for being somewhat of a malcontent but Bolton surely needed his talents if they are to stay out of the relegation zone.
In other news:Shiva won't go back to Dynamo Kiev and wants to return to first team action with Chelski
Most of the other transfer rumors, including the Defoe/SWP swap, were bull.
Zat Knight gets nicked with crack cocaine and heroin just hours before being trumpeted as Villa's new signing.
Reading are offended by West Ham's "derisory" offer for Nick Shorey.
Pompey is still looking for a striker.
Another Russian billionaire is getting into the Premier League.
Freddy Adu is getting settled at Benfica.
Dane, Thomas Graveson, has joined Everton on loan for the rest of the season.
Sam Eto'o is out two months for Barca with a partial tear of his right thigh tendon.
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