The 34-year-old, who scored five goals in 28 appearances for the Cumbrians last season, has put pen to paper on a six-month deal to keep him at Brunton Park until December 29.
“Derek was actually ready to sign his contract when he got back to the club on Thursday morning so there were never any real issues,” Carlisle boss Keith Curle told the club’s official website.
“We had a few minor negotiations that needed to be ironed out and that’s always done better face-to-face.
“It’s a short-term deal because I know he needs to be hungry if I’m going to get the best out of him. This type of deal gives him that extra edge.”