Walters, like Fyfe, was due to come out of contract at the end of this season.
But the 32-year-old is now locked in to play a role in the Dockers' flag push under Justin Longmuir until the end of 2025.
Walters and Fyfe featured in Fremantle's grand final defeat to Hawthorn in 2013 - the West Australian club's only season decider to date - and are desperate to achieve the ultimate team success.
Fyfe's contract extension was confirmed last week after considerable conjecture surrounding the 31-year-old former captain's future.
"We have been here for a long time, we've seen a lot of players come and go through the team and the young group that are stepping up at the moment are playing some unreal footy," Walters said.
"The young boys are always eager to learn, get better each and every day, which also keeps us motivated.
"The ultimate team success is something that we're chasing and something we want to get before we do retire."
Walters has kicked 331 goals from 211 games for Fremantle since being drafted from WAFL club Swan Districts in 2008.
He has 16 majors in nine appearances this season, sitting third in the Dockers' goal-kicking, and is pleased the two-year deal will mean he finishes his AFL career as a one-club player.
"It's the club I always wanted to come to, the club that I've been at for my whole adulthood," Walters said.
"It's good to be here for a further two years."
Walters missed Fremantle's win over Melbourne before the bye but is eyeing a return from a calf injury against Richmond.
The Dockers (6-5) have won four straight matches to surge back into the finals equation.
"I was close," he said of the Melbourne game. "I could have pushed myself but there's no point pushing yourself when the team is in good form.
"They went over and got the job done. The bye helps me to rest up and get the calf right."
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