Vaughan has signed a one-year extension to his deal which will keep him at Gresty Road until the summer of 2007.
The 20-year-old's displays for The Railwaymen last term resulted in a promotion to the senior Wales squad for their end-of-season tour to the United States.
The midfielder was given his Wales bow by Mark Hughes in the 2-0 defeat to the USA and he will be keen to maintain his berth in the senior squad.
Vaughan was a key member of the Crewe set-up last season and proved a versatile performer as Dario Gradi's troops secured promotion to the First Division.
Though Gradi prefers to deploy Vaughan in midfield, the starlet had no problems in filling in as a makeshift left back when required.
