Jussi Jaaskelainen will sign a new contract at Bolton once he returns to pre-season training next week.
The Finnish keeper allowed his previous deal to come to an end and had been attracting interest from elsewhere.
However, having spent 11 years at Reebok Stadium the shot-stopper has decided to prolong his stay with the club.
The 33-year-old admits that he was never in any doubt that he would be staying on and had agreed, in principal, to the new deal at the turn of the year.
"Gary Megson told me in January, February time that he was going to offer me a new deal at the end of the season, so in my mind I have never thought about leaving," Jaaskelainen told Sky Sports News.
"Whenever your contract comes to an end you always worry about what's going to happen, but the club came to me at the end of the season and everything was sorted in a week.
"Now it's ready for when I go back to Bolton to sign the deal.
"I'm absolutely delighted that I can carry on playing there."
Jaaskelainen was forced to sit out the end of last season with a back complaint, a situation which allowed Oman international Ali Al Habsi to stake a claim for the No. 1 jersey.
However, the Trotters stalwart believes that competition for places is an integral part of a healthy squad and is looking forward to battling for a first-team spot next term.
"There's always competition - not only at Bolton - when you play in the top league if you don't perform there's going to be lots of other keepers coming in," he said.
"Of course Ali played very well at the end of last season and will be more impressive, but I think that will bring the best out of everyone."