The former Republic of Ireland youth international, 35, has committed to a 10th season for the Shrimps after his move from Chesterfield in 2008.
The ex-Nottingham Forest stopper memorably scored a last-minute goal in February 2016 against Portsmouth.
"Barry had another excellent season last year and is a big member of the squad," said boss Jim Bentley.
Morecambe goalkeeper Barry Roche has signed a new one-year deal with the League Two side.