Matthew Foulds has put pen to paper on a new one-year contract - keeping him at the club until at least the end of the 2021/22 season.
The Bradford-born defender was offered a new deal upon the expiry of his short-term agreement, which came to an end following the 2020/21 campaign.
Former City academy prospect Foulds spent the second half of last season at the Utilita Energy Stadium, making three substitute appearances.
The ex-Everton man is delighted to have extended his stay in West Yorkshire.
He said: “I am over the moon to be staying here and cannot wait for pre-season to begin.
“I did not play a lot of games last season, so getting the call to say I would be offered a contract extension was a huge relief for me and my family.
“There is certainly more to come from me and, despite only playing three matches last season, I obviously did enough to earn a new deal.
“I already know the gaffer quite well, so to have him here with us is a huge boost for me. I know he believes in me, so it is up to me to repay his faith when I am given the chance to play.
“I grew up watching Bradford City and now I will be on the pitch in front of our supporters. I want to show them why I should be playing - and why I love this club.”
Bantams boss Derek Adams added: “We are very pleased to have secured Matty’s services for at least the coming season.
“He is a player I know well, having tried to sign him at Morecambe last summer, when he left Everton. We have kept in touch since, and already built a strong relationship.
“Matty has lots of ability and is still young. In the minutes he managed to get here last season - from January onwards - he showed everyone what he is capable of and what an asset to our squad he is.
“As a Bradford lad, he is desperate to succeed for this club, and I am looking forward to finally working with him.”