Daley remains at York following an outstanding debut season at the Club, having made 24 appearances as the Knights reached the Betfred Championship Play-Offs.
The 27-year-old signed for York from New South Wales Cup side Mounties and made an immediate impression on Knights supporters with his impetus and impact as an interchange hooker.
On extending his stay at the Club, Daley said: "I'm really excited to be staying here at the York Knights for another year. I've absolutely loved my time here, last year was one of my favourite seasons in rugby league, so I very keen to go around again.
"2023 was a really enjoyable year and helped me to develop lots of different skills - I haven't played as much at half-back since I was a kid!
"We had a next man up mentality and the boys really bought into that. I think that showed towards the end of the season to reach the Play-Offs.
"We're really hopeful that we can build on that form in 2024!"
Head Coach Andrew Henderson added: “I’m really pleased to have been able to retain Josh. When I was at Keighley, I looked to bring Josh to the Cougars, but unfortunately we lost out to York!
“When I joined the Knights, I was really looking forward to the opportunity to work with Josh.
"Once Josh found his feet here in our environment, having made the move to the UK, I really thought we saw some really good quality performances from him, even when covering for us at half-back.
“Josh brings a lot of genuine attacking threat around the ruck, and is certainly a player that I’m delighted we were able to retain him for 2024!”
Daley becomes the 15th confirmed squad member for the 2024 season alongside Jesse Dee, AJ Towse, Ata Hingano, Conor Fitzsimmons, Jordan Thompson, James Cunningham, Ronan Michael, Jack Teanby, Ukuma Ta'ai, Pauli Pauli, Levi Edwards, Oli Field, Will Dagger and Jimmy Keinhorst.