The 37-year-old Uruguayan star scored 20 goals in 2024 to match Lionel Messi for the team lead. He also bagged nine assists in 27 matches (21 starts) during his debut season in the league.
The MLS Newcomer of the Year finalist helped the club win the Supporters' Shield with an MLS-record 74 points.
"In 2024, Luis brought to Inter Miami all of the elements that make him one of the greatest strikers of all time. He performed at an elite level for us, and we're excited to see that continue next season," said Inter Miami president of football operations Raul Sanllehi.
"Luis was not only our leading scorer this season but also a leader for the group. His impact cannot be understated."
The signing comes one day after Inter Miami introduced Javier Mascherano as the new head coach. Mascherano and Suarez played together at Barcelona, along with Inter Miami teammates Messi, Jordi Alba and Sergio Busquets.
"I'm very happy, very excited to continue for another year and to be able to enjoy being here with this fanbase, which for us is like family," Suarez said.
"We feel very, very connected with them, and hopefully, next year, we can bring them even more joy."
Suarez has scored 496 goals and collected more than 20 trophies during a professional career that includes stops with Ajax, Atletico Madrid and Liverpool in addition to Barcelona.