United's Player of the Year last season, Chisholm starts a new job in Auckland early next year and was thinking of moving to a northern club.
"But seeing my team-mates training hard for this Sunday's away game against Auckland gave me itchy feet, and I've put pen to paper for another season with Otago," Chisholm said.
Chisholm's height and power in the air will be a bonus for United, and a possible partnership with Irish professional Colin Falvey should stabilise Otago's defence.
Moving forward at set plays, Chisholm has scored more than a few goals, and is keen to carry on in that vein.
The New Zealand Football Championship has been reduced to two rounds this year - 14 games instead of 21 - which will help Otago deal with Chisholm being based in Auckland for the last few matches.
United coach Terry Phelan welcomed the return of young Chisholm.
"Once he is match fit again, he will be an asset to the squad. He has never given less than a 100% in matches and that is the attitude that we want."
