The New Zealand spinner took 51 wickets as the Bears won last season's title and has now signed up for a fourth season at Edgbaston.
"Winning the County Championship with Warwickshire is one of the highlights of my career and I see no reason why we can't push harder for success in all formats next season," he said.
"Birmingham has certainly become my adopted home. I'm looking forward to returning in 2013 and hopefully playing a major part in more success for Warwickshire."
Departing director of cricket Ashley Giles - England's newly-appointed limited-overs head coach, said: "'Jeets' is a world-class spinner who's produced many outstanding performances and is a great role model to the younger players in the squad.
"Whilst I'm moving on to my role with the England team, I'm delighted the club has been able to secure him as the overseas player for the 2013 season before I depart.
"His 51 wickets were crucial to winning the County Championship last season, and I know that everyone is looking forward to his return."
- Sports & Recreation