Chris Taylor has put pen to paper on a deal which will see him remain at the Utilita Energy Stadium until the end of the season.
The former Blackburn Rovers midfielder, who trialled for Gary Bowyer's Bantams over the summer, has so far made nine appearances in claret and amber.
Having officially joined the club on a short-term basis in November, Taylor's current deal was set to expire later this month.
He said: "I am absolutely delighted to have signed until the end of the season.
"I am really enjoying being a Bradford City player. It is a massive club, where we are all aiming for promotion. That has always been a dream of mine.
"We have been in great form recently and I cannot wait to, hopefully, keep this unbeaten run going."
Boss Bowyer is pleased to have secured Taylor's services for the remainder of the campaign.
He added: "Chris boasts a great deal of experience and has the ability to play in a variety of different positions.
"He will certainly help us for the rest of the season and is a great person to have around the dressing room."