Indianapolis made the deal official Monday. Sources informed NFL Network of the contract's parameters.
"He is an ideal representative for our organization, the Indianapolis community and Colts fans everywhere. We value Adam's reliability and feel he will continue to kick at a high level.
"In addition to his performance on the field, he brings a tremendous amount of leadership to our locker room. He sets the standard for what it means to be a professional and how to properly prepare, especially for our younger players. We're privileged to watch him continue his iconic career for another season."
Vinatieri, 46, made 85.2 percent of his kicks last season. He also hit 44-of-47 extra point attempts in 16 games. Vinatieri began his career playing his first 10 seasons for the New England Patriots. He joined the Colts in 2006.
The three-time Pro Bowl selection and three-time All-Pro pick has won four Super Bowls during his 23-year NFL tenure.
Vinatieri leads the NFL in career points with 2,600. He ranks No. 2 in career extra points made at 852 and No. 1 in field goals made at 582.