Anelka verbally insulted Raymond Domenech during France's clash with Mexico and then missed training after reports of a row with the coach during their 2-0 defeat.
Anelka refused to apologise when asked to by French Football Federation president Jean-Pierre Escalettes and subsequently left the squad as France bowed out of the competition at the group stage in disgrace.
But Anelka was quick to put his international problems behind him by committing himself to Chelsea until 2012.
Anelka's contract was due expire next year but France's early exit meant Chelsea could finally seal a contract extension that had been put on hold as the club concentrated on winning the League and FA Cup double.
A spokesperson for the club confirmed: "Chelsea is delighted to announce that Nicolas Anelka has signed a one-year extension to his existing contract that will keep him at the club until 2012."
Anelka, 31, was delighted to pledge his future to the double-winners and insisted he had no plans to move on.
"When I first came to Chelsea I wanted to stay much longer than I did in the past with other clubs," said Anelka.
"It is a big club, you play with big players and I like this club, I like London.
"There is no need to move anymore and so I am very glad to sign a new contract and I know we will play in big games and win titles. I am very glad."
Anelka's decision to stay has delighted Italian coach Carlo Ancelotti.
"Nicolas is a fantastic player who has good technical qualities and movement," said Ancelotti.
"When I was coach at Juventus I wanted to buy him, so it is good now he has signed for me and I think Chelsea is his home. I look forward to working with him for one year more."
Anelka has appeared 123 times for Chelsea since arriving from Bolton in January 2008. He has scored 42 goals.