The 34-year-old had been out of contract since the end of last season but has now committed his future to the Granotas, with the extension confirmed after his participation with Australia at the recent World Cup, hosted jointly by Mexico, the United States and Canada.
The Sydney-born goalkeeper originally arrived on a free transfer from French club Lens under previous manager Julián Calero, agreeing an initial one-year deal that carried an option to extend to 2027 depending on his form and Levante's fortunes.
Ryan will now report back for training under head coach Luís Castro in the coming days once his post-tournament break concludes. Castro replaced Calero in December after Levante's poor start to their return to the top flight, before ultimately guiding the club to safety.
Last season Ryan made 36 appearances in La Liga, establishing himself as a first-choice pick and posting a save percentage close to 70 per cent — among the best return of his long career, which has also taken in spells at Club Brugge, Brighton, Arsenal, Real Sociedad, Copenhagen and AZ Alkmaar.
He will now compete for the starting spot with Pablo Cuñat, who recently signed his own extension through to 2027 having made his senior La Liga debut for the club against Alavés earlier this year, conceding five goals across his two appearances so far.
Ryan's renewal comes as Levante continue preparing for a second successive campaign in the top flight, having narrowly avoided relegation last term after Castro's arrival helped stabilise a side that started the season bottom of the table under Calero.
The Australian international, a veteran of the 2014, 2018, 2022 and 2026 World Cups and long-time captain of the Socceroos, is expected to remain a key dressing-room presence for the club regardless of who ultimately wins the number one shirt.