The 28-year-old, who moved to Bloomfield Road in 2012, had been linked with a move to Ipswich Town and Barnsley in recent weeks.
However, Broadfoot has said that he is happy to commit his future to the Championship side.
"I obviously signed for a year [at first] just to see how it was and I loved it at Blackpool, the boys I get on great with and everybody about the club," he told the club's official website.
"I took my time to make my decision because I didn't want to rush into anything. I contemplated staying up the road for family reasons but when you think about it, why not come back to The Championship because it's an exciting league.
"It's not so much on my doorstep but it's not far down for my family and my mum and dad to nip down in the car."
Broadfoot made 34 appearances for the Seasiders last season.