The 31-year-old Republic of Ireland international, whose deal at Bramall Lane is due to expire next summer, is currently serving the ban after failing a drugs test in May.

Kenny's suspension rules him out until the last few weeks of this season and he had feared that the Blades would refuse to offer him a new contract.

Blades manager Kevin Blackwell said: "We're delighted, both for the club and for Paddy, that the situation has been resolved.

"Paddy has had his contract extended for 12 months and he will now have the chance to prove that he's still one of the best goalkeepers in the Championship.

"It's great news for him and the club because we will have a quality player available, albeit not until next season."

Halifax-born Kenny, signed for the club by former manager Neil Warnock seven years ago, was banned by the Football Association in the summer after he had tested positive for the banned substance ephedrine following the Blades' Championship play-off semi-final against Preston.

Kenny, suspended immediately by the Blades, has always maintained he was not a 'drugs cheat' and that the ephedrine had been taken in a cough remedy bought over the counter at a chemists.

But although his explanation was accepted by both his club and disciplinary chiefs, the FA still imposed a nine-month ban and rejected his appeal against the severity of the sentence last month.

Kenny, unable to train with his Blades team-mates, will be available for the final three league games of the season.