The winger is set to remain at the Britannia Stadium with manager Mark Hughes confident he can bring the creativity and attacking flair he wants to the Potters
The 30-year-old, who was due to be released, will now stay at the club he joined in 2011 from Real Zaragoza.
Stoke manager Mark Hughes says he is a big fan of the former Liverpool man and feels that after speaking with the player he is confident he will be a success at the club next season.
“I’ve admired Jermaine from afar and there is no question about his ability,” he told the club's official website.
“I am looking to introduce more creativity and attacking options to the side, qualities Jermaine can certainly offer us.”
“I had a very positive meeting with him and it’s now up to him to show everyone what he is capable of doing.”
Pennant endured a difficult campaign last season, making just one appearance in the Premier League, and spending three months on loan at Wolves.
However, the Potters are confident the 30-year-old still has the talent and application to prove himself in the top flight.
“We have been impressed with Jermaine’s determination to prove any doubters wrong," chief executive Tony Scholes added.
“He clearly had a difficult time last season, but the Stoke fans love him and he loves them. We believe that at 30 years of age, he still has a lot to offer.
“The one year contract, which has the option to be extended beyond that, has been structured in a way which should ensure he focuses on his performances on the field.”