Sheehan has been part of the Bolton side that reached the League One play-offs in each of the last two seasons and won the EFL Trophy in 2023.
The Whites are currently 11th in the table, but the midfielder – who has started 13 of Bolton’s 14 league games – believes that he can be successful with Ian Evatt’s side.
“I want to achieve things with this football club and this allows me an even greater opportunity to do that,” he told the club’s website, external.
“I believe this season can still be a successful one and hopefully that will only be the start of more good times for myself and the club.