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The 27-year-old, a first-team regular for Valencia since moving from Real Valladolid in August 2011, has penned a new two-and-a-half-year deal.
Barragan has made 18 Liga appearances for Nuno Espirito Santo's side this season, helping Valencia climb to fifth in the league table.
"I am very pleased with the renewal, it is what I wanted," said the defender. "In the end we came to an agreement that suited both parties.
"I am very happy to continue in this great club."
Having started his career with Sevilla, Barragan joined Rafael Benitez at Liverpool in 2005, but failed to make an impression and soon returned to Spain with Deportivo La Coruna.
