The cockney actor has played lovable Mick Carter in the BBC One soap since 2013, and bosses were understandably keen to secure him for a while longer.
Danny, 40, is said to have signed the new contract last week after meeting with the soap’s boss John Yorke, with Yorke reportedly reassuring the star that there are exciting things in store for his onscreen character.
Speaking to the Daily Star, an insider explained: “The last year has been a bit up and down for Danny and his character Mick.
“His on-screen wife Kellie Bright was off on maternity leave for a lot of it, so there was only so much they could do with him.
“But he’s had a meeting with John and is very excited about everything he’s got planned for Mick.
“It’s a slightly different path for his character – there’s going to be bother.
“It’s all top secret but fans won’t be disappointed, especially as Danny has signed for two years.”
The news comes after The Sun claimed that Danny had refused to sign his new contract last month, with the star reportedly telling fans: “This takes up my life, this does.
“I ain’t signed yet. I’m meant to sign in October but I might elbow it.”
The BBC confirmed that Danny will remain on the soap, saying in a statement: “We never discuss artists’ contracts but we can confirm that Danny will be staying with EastEnders.”