The former Southampton man, who will be nearly 36 when the new campaign begins, will also work with Argyle's academy as a senior professional development coach.
And he only needs 17 appearances next season to become just the second player to reach 500 games for the club.
"I'm thrilled," he told the club's official website. "I'm really enjoying my football; I'm still enjoying my training; and I'm really happy.
"The important thing is that the body feels really, really good.
"I'm like every other player - I want to play in the first team on a Saturday, and I will be doing everything I can to get in the team.
"At the same time, I have got a role in the academy which I am looking forward to."