The 25-year-old, who has been with the Blues since 2010, has signed a two-year contract with the option of a further year.
The former Port Vale man made 36 appearances last season and started the club's Johnstone's Paint Trophy final against Crewe at Wembley.
Manager Phil Brown told the club's official website: "We're very happy that Luke has decided to stay with us and sign a new deal.
"He's a player who I like a lot because he can play at left-back or the left side of defence, so he gives me defensive options.
"He works hard and showed a very good attitude towards the end of the last campaign, he'll have a big part to play this season."