Merritt, 27, is one of three players still at the club after playing in the Rabbitohs’ re-instatement season in 2002. The speedster has scored over 100 tries in the process.
Sutton was widely thought to be on his way out of the club, but the decision to announce Michael Maguire as coach from the start of next season, has seen the local junior extend his stay.
Rabbitohs chief executive Shane Richardson was delighted to have kept the pair and said he was proud to reward players that have come through the club’s junior’s.
Sutton admitted he was relieved to have secured his future after speculation linking him with moves to the English Super League and the Sharks.
“I’m really happy to have my contract sorted and to know I’ll be at Souths for the next three years,” Sutton said.
“I love the club, my family loves the club, and I can’t imagine playing anywhere else.”