The 26-year-old, released by Portsmouth in January before joining the U's on a six-month deal, scored once in 19 appearances for the club last season.
The former Arsenal trainee has made more than 250 career appearances for clubs including Exeter and Stevenage.
"He understands how we like to work and gives us good cohesion from last year's team," said boss Shaun Derry.
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Cambridge United midfielder James Dunne has signed a new one-year contract with the League Two side.