He has played a key role this season too, including turning out 11 times for Danny Wilson's side in the GUINNESS PRO12.
The 25-year-old will face competition for his place from next season though with the club having last week announced the signing of Wales international Matthew Morgan on a two-year deal from Bristol Rugby.
But Fish insisted he was relishing the chance to continue to show what he could do.
"I'm from Cardiff and growing up I always wanted to play here so I am really happy to be here for another two seasons and excited by the plans for the future under Danny Wilson," he said.
"People want the full back jersey at Cardiff Blues. We used to have Ben Blair, Leigh Halfpenny and Chris Czekaj and now we have boys here who want to do a job too.
"I'm looking forward to that challenge and you have to embrace it."
Fish is one of a number of players to sign new terms with the club following in the footsteps of Josh Navidi, Josh Turnbull, Lloyd Williams and Ellis Jenkins.
And head coach Wilson was delighted to see Fish commit to the club, adding that the depth in the squad was growing strong all the time.
"Dan has been in outstanding form this season for us and really earned the new contract with the manner with which he has conducted himself and performed for Cardiff Blues.
"With Matthew Morgan also joining us from next season, there is real competition for the No.15 jersey at Cardiff Blues with a number of players pushing for the position.
"That is the kind of strong competition we need across the field and Dan is very keen to remain at a region that clearly means a huge deal to him and fight for a starting spot as he continues to improve as a player."
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