Left-armer Dean led first-class wicket-takers with 84 scalps during the last English domestic season.

But, despite topping County Championship division two for the first half of the summer, Derbyshire missed promotion after a late slump in form saw them finish sixth.

"I am extremely happy at Derby, and hope that the success that everyone deserves is just around the corner for us," said Dean.

"These are really exciting times both on and off the pitch, and I want to be a big part of it."

Pakistani-born pace bowler Mohammad Ali has already signed a new two-year contract, and all-rounder Graeme Welch has extended his contract until the end of 2005.

They will be joined next year by New Zealand batsman Nathan Astle, who becomes the club's second overseas player.

"It's always gratifying when a top quality cricketer such as Kevin wants to be at the club," Derbyshire chief executive John Smedley added.

"And we are very happy to have secured his medium term future."