The 30-year-old, who has scored 24 goals in 60 games for the League One outfit, also has an option to extend his stay at Brunton Park for a further 12 months.
Carlisle boss Greg Abbott told the club's official website: "We know what he brings to the side when he's playing at the top of his game and we also know that he likes being here.
"He brings a lot to the team and the dressing room and we're delighted that we have got this sorted.
"He can knuckle down and concentrate on his football now and we're really looking forward to working with him again this season."
Miller joined Carlisle from Middlesbrough in 2011.