"It was an easy decision to offer him another contract because Louis is what I call a 100 per center, someone you always know will give you 100 per cent effort," Phoenix coach Ernie Merrick said.
"If he isn't having a great day technically he makes up for it with effort.
"He is an emerging young New Zealand player who has already represented his country at senior level and I believe he will be an All White long term.
"The way he is developing as a player and a person was shown when he captained a young Phoenix team to the finals of the Hong Kong Sevens a few weeks ago.
"He has had some injury problems including a couple of shoulder dislocations, but he is learning to look after himself better now and doesn't go at things like a bull at a gate as he used to.
"Pace and commitment is a big part of his game and he is using those attributes well now."
Fenton, 22, said he was happy to be staying at the club.
"I still feel lucky that I get to play the game I love with a good bunch of boys," Fenton said.
"I believe the shoulder injuries that were so frustrating are now behind me as I haven't had any problems for nine months and they feel stronger than ever."
Fenton is currently in Papua New Guinea captaining the New Zealand Under-23 team at the Olympic Games qualifying tournament.
"It's a pretty cool feeling captaining my country and I'm very proud that I've been given the opportunity," he said.
"There is extra responsibility which I'm enjoying and learning from but I think it was about time I started to grow up and tried to be a leader.
"Playing in the Olympics would be a real dream and a chance to play against some great players, but we must first qualify."