"I'm happy to be staying on for another year," Kelly told the Lancashire Evening Telegraph.
"The manager intimated that he wanted me to stay and once I started talking, it didn't take long to get things finalised.
"I'm playing with a great set of lads, the club is moving forward and it's nice to get these things sorted out before the summer.
"I presume the club are looking to bring in another young goalkeeper because they have had four or five 'keepers here who are over 31 and you need to bring young people through.
"But the set-up here is fantastic and I'll keep enjoying it for as long as I can."