The 38-year-old joined Sale after leaving Bath in 2014 and has played 13 times as he has shared the number nine shirt with Chris Cusiter.
Stringer has been capped 98 times by Ireland, but has not featured for his country since 2011.
"I'm delighted to have agreed a new deal. I am loving my rugby at Sale Sharks," he said.
"It's a great environment and we have some very talented players at the club."
Stringer spent 15 years at Munster and has also had stints at Newcastle Falcons and Saracens in the Premiership.
"Peter is a model professional who is incredibly fit and shows no signs of getting old," said Sharks director of rugby Steve Diamond.
"He has brought our backline to life this season."
Sale Sharks scrum-half Peter Stringer has signed a new one-year deal with the Premiership side.