The 35-year-old, who moved to Loftus Road on a free transfer from Crystal Palace in June 2010, has committed to QPR until the summer of 2014.
Derry told the club's official website, www.qpr.co.uk: "I'm absolutely delighted. It's changing times once again with Harry (Redknapp) coming in and I find myself playing more now than I did under Mark Hughes.
"I'm just so delighted to commit myself to the club for another year - I'm enjoying my football more than ever."Derry has made 91 appearances in all competitions for the Hoops, but was a peripheral figure before being restored to the side by Redknapp who has added some steel in an unbeaten 2013, a run of five games.
"When you're not in the side or even in the squad and you're questioning whether or not you should move on, it always stuck in my mind the many happy memories I've had here," added Derry, who has had spells at Notts County, Sheffield United, Leeds, Portsmouth and Nottingham Forest.
"I've come to the club at the latter stages of my career but without question, I've enjoyed the happiest time of my career at QPR.
"Harry's got everyone believing again. There's a togetherness about us now.
"The team spirit - which comes through runs like this - is improving all the time.
"We're all coming together at the moment. We're showing that togetherness that is required."
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