The 29-year-old has been sidelined since April with a cruciate ligament injury.
Rovers chairman Nick Higgs told the club's official website: "We are delighted that Danny has signed a new contract.
"He is a very influential player, who brings a lot to the team. He is recovering well from his injury and we hope to have in back around Christmas time."
Woodards joined Rovers from MK Dons in August 2011.