The twice-capped Italy international scored three goals in 15 Serie A appearances for the Biancocelesti, after arriving in the Eternal City on transfer deadline day in January
The Italy international spent the second half of last season with the Biancocelesti, who have now persuaded the Zebrette to allow the 25-year-old to remain at the Stadio Olimpico for the duration of the 2012-13 Serie A campaign.
"It's a great feeling," Candreva told the capital club's official website. "I wanted this and I am happy to continue this adventure with Lazio.
"There is a desire to do well this year. We're having a great pre-season, but we're also having fun.
"The coach [Vladimir Petkovic] has not yet said what system we will play. We are trying things and we have to get ready for the start of the championship."
Candreva, who has two Azzurri caps to his name, joined Lazio on the final day of the January transfer window and went on to net three times in 15 Serie A outings for the Roman outfit.