His decision to stick with the franchise caps off a good week for the Nuggets, with major-naming sponsor Oceana Gold announcing late last week it was continuing its involvement for another year.
Nuggets coach Alf Arlidge said To'omata's signature was a blessing.
The Nuggets dropped out of the league in 2009 and struggled in their comeback season, losing all 18 games.
But the lively point guard had a strong season and was one of the few players who held his own.
"From my point of view it is a great step forward for us to get him back," Arlidge said.
"He was being chased by a couple of other teams to be honest ... and he is one of the first players we wanted to get back on board for 2011.
"Obviously, now we need to sign up the local players we had last season and add a few more pieces."
Arlidge, though, was non-committal about his own future.
Asked if he was ready to return next season he responded: "Nearly".
"There are just a few things I need to see. They've got to tick a few boxes."
Arlidge would not be drawn on what he wanted, but he has said publicly in the past he needed more support from the franchise in terms of putting better calibre and more experienced players around a green playing roster.
• New Zealand has dropped five places to 18th in the men's world rankings despite qualifying for the knockout phase of 16 at this month's world championships in Turkey, NZPA reports.
Its fourth placing at the 2002 world championship drops off the eight-year calculation window.
