Recent reports had claimed that the club's longest serving player may opt for a fresh challenge during the summer, having only started 17 matches in the Championship campaign.
However, the 31-year-old has insisted that he would like to play his part in helping the team return to the Premier League.
"When you love the club and you so badly want it to do well and get back to the Premier League you don't want to let people down. I didn't want to jump off or anything like that," he told the Lancashire Evening Telegraph.
"I'm a big part of this club and I've been here for a long time. I'm the longest serving player now, with Dunny having two spells.
"It's tough, you've got feelings and that's why it hurts even more when you lose games. But I've still got one more year left and that's what I'm thinking of. I'm going away now and I'm coming back here for pre-season."
Pedersen signed for Rovers from Tromso back in 2004.