The 31-year-old, who started out at the academy at Vale Park, sealed the deal on Thursday morning.
Birchall made 30 appearances for the Valiants last season, scoring three goals for the League One side.
Manager Rob Page is pleased to have the former Trinidad & Tobago midfielder on board for another season.
“We’re pleased that Chris has signed a new contract,” he told the club’s official website.
“He’s a local lad who knows what Port Vale Football Club is all about and is an extremely hard-working player as well both going forward and defensively.”