The 34 year old former Watford and Peterborough man has featured in 18 games for the Hatters this term. Manager Gary Brabin expressed his delight at Tyler's decision to commit to the club.
"Mark is a fantastic goalkeeper and a top, top professional. His attitude is first class and I'm absolutely delighted that he's agreed to commit his future to this club."
Tyler signed for Luton ahead of the 2009/10 season, linking up with a whole host of former Posh players including Liam Hatch, Adam Newtown and Claude Gnakpa.
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