The Newcastle midfielder is back to his best form and Allardyce said earlier in the month he wanted to tie the former Manchester United player down for another year.
Toon Midfielder Signs New Contract!
The 32-year-old has agreed a new 12-month deal which will keep him at St James' Park until the end of next season with the option of another year.
The England international joined the Magpies in a £2.5million move from Manchester United during the summer of 2004, but struggled to find his form.
He was loaned to Birmingham City but returned last season.