The 27-year-old Canadian scored 55 points in 61 games to help his team win the Elite League championship.
His rapport with fellow-winger Rob Dowd was one of the key elements in Sheffield’s offence.
Coach Paul Thompson said: “Levi is in his prime. He had a fabulous season for us, he was our second top point scorer (behind Tyler Mosienko) and he and Dowd have great chemistry – it is something there we want to continue.
“Levi is skilled, skates well and comes to work every day. He is the first at the rink, two, hours before practice or a game.
“He hits and he whacks and is a general pain to play against and that’s what we want.
“He makes and takes big hits, he gets rocked and comes straight back at you. He has a great a great skill level as well, he scores and he creates” said Thompson.
“We signed Dowdy on a multi-year deal and have done the same with Levi, the chemistry is right between those two guys so why look elsewhere?
“This is a strong core of players we are building here ahead of next season.
“We now just need to add the right components to ensure we are fighting for all of the trophies next season.”
Mosienko has also re-signed as has other major points-takers Mathieu Roy and Ben O’Connor.