The 22-year-old joined the Bulls on a 12-month deal in the winter and scored 84 points through 38 goals and two tries in 10 appearances until he tore a pectoral muscle in his side's Challenge Cup win at Rochdale last month.
"It's a massive confidence boost for me to get this new contract," Foster said.
"The deal was very easy to agree and I was quick to sign on the dotted line. I'm just really excited about what the future holds now. The club is certainly going places."
Bradford coach Francis Cummins said: "I don't think we've seen the best of Jamie. I wanted him to stay and he's agreed so we're really pleased."
Foster is the first player to sign fresh terms since Bradford's Super League licence was renewed.
Bradford chairman Omar Khan said: "I am delighted that Jamie has pledged his future to us. He is one of our most popular players and a massive asset to the team with his tremendous goalkicking.
"The fact that he was so keen to extend his contract shows the faith he has that the club is moving forward in the right way.
"We will be announcing many more signings over the coming weeks as we look get the club back where it belongs."
- Sports & Recreation