The 28-year-old player had joined Usuthu midway through the recent 2018/19 Premier Soccer League (PSL) season.
Gumede helped the KwaZulu-Natal giants retain their status in the PSL - featuring in six league matches.
Usuthu have now decided to exercise a two-year option on the tough-tackling player's contract ahead of the new 2019/20 campaign.
"AmaZulu FC have exercised a 2-year option on Tshepo Gumede’s contract following the 28-year-old defender’s six-month tenure with Usuthu which he signed in February this year," a statement read.
The Soweto-born player will compete with the likes of Sadate Ouro Akoriko, Tapelo Nyongo and Philani Gumede in the Usuthu central defence.
Gumede joined AmaZulu as a free agent having parted ways with Cape Town City prior to the start of the recent campaign.
The 28-year-old helped the Citizens win the Telkom Knockout Cup three years ago - featuring in three matches.
Prior to that, he had an unsuccessful spell with Pirates where he made only six appearances in the PSL.
The Buccaneers had snapped up Gumede from Platinum Stars midway through the 2014/15 season.
The SuperSport United academy product made his name at Stars where he won the MTN8 Cup and Telkom Knockout Cup in 2013.
NEW DEAL— AmaZulu FC (@AmaZuluFootball) June 22, 2019
AmaZulu FC have exercised a 2-year option on Tshepo Gumede’s contract following the 28-year-old defender’s six-month tenure with Usuthu which he signed February this year.#Usuthu_Unite pic.twitter.com/2d4lglOxtX