The 24-year-old joined the Blues from Torquay last summer and scored five goals in his 41 appearances.
Chapell came through the youth system at Sheffield United and has also had stints at Burton and Grimsby.
"One of the main things about staying here was Jon McCarthy taking over as permanent manager," he told the club website.
Chester winger Jordan Chapell has signed a new one-year deal with the National League side.