Striker Kayden Jackson has signed a new two-year contract with the Blues, tying him to the club until the summer of 2024.
The 28-year-old's current deal was up at the end of June with Town having taken up a one-year option last summer.
Jackson’s Blues career looked over until Kieran McKenna took charge in December with the player admitting he had expected to be on his way. Rotherham United were weighing-up a January move.
But the incoming boss brought him in from the cold for his first league involvement since September in his second game, the 4-0 win at Gillingham.
The striker was in and around the squad from then on until he picked up a hamstring injury in the Portsmouth game in mid-March.
Overall in 2021/22, Jackson scored five times, three following McKenna’s appointment.
Skipper Sam Morsy let slip that Jackson was close to signing new terms in an interview in March and now the club has confirmed that the deal has been signed.
"I'm really pleased that it's done,” Jackson told iFollow Ipswich. "Because of the injury, the negotiations have been going on for a little while, but I am delighted to have it sorted now.
"We have had positive discussions ever since I got back into the team and I have loved playing under the manager. I play my best football when I am happy and it's been nice to get that feeling back.
"In terms of the injury, the rehab is going well. I have a big summer ahead and I am already looking forward to next season.”
Manager McKenna added: "Kayden’s attitude and personality have really impressed me since I arrived, and we are delighted he is staying with us.
"He’s an incredibly hard worker in training and, before the injury, that hard work was showing in his performances. His rehab is going well and we are all looking forward to seeing him back in action come next season.”
Jackson joined Town for £1.6 million from Accrington Stanley in the summer of 2018 during Paul Hurst’s brief spell as boss.
The Bradford-born frontman has gone on to make 69 starts and 49 sub appearances, scoring 21 goals.