The deal, announced on Monday, takes the first-choice All Blacks Test starter through to the next Rugby World Cup in 2019.
He joins six other All Blacks in Julian Savea, Sonny Bill Williams, Aaron Smith, Patrick Tuipulotu, Brodie Retallick and Dane Coles to have committed through to the next World Cup in Japan.
"Joe's re-signing is great news for the All Blacks and New Zealand Rugby," said All Blacks head coach Steve Hansen.
"He has developed into a very important member of the All Blacks, he is a very good scrummager and works incredibly hard on his core roles.
"We look forward to watching how his game develops even further."
Moody, 27, made his Super Rugby debut in 2013 and was called into the All Blacks a year later, amassing 14 Test caps since - including the 2015 World Cup final win.
"I am loving my rugby at the moment. The All Blacks and Crusaders both have fantastic forward packs and I have learnt a lot and progressed my rugby significantly in both environments," Moody said.
"I want to continue to improve my game and, from a Super Rugby point of view, the Crusaders is the best team for me to do this so re-signing for a team I love was an easy decision."