Midfielder Solomon Taiwo has agreed a new one-year deal at Kenilworth Road.
The 28-year-old former Dagenham & Redbridge man has impressed in his nine appearances for Town this campaign having signed on a deal until the end of the season in March.
During that time he scored once, from the penalty spot, in the 2-2 draw at Cambridge United.
Hatters boss John Still told the club’s official website: “Having known Solomon before, it was fortunate that we were able to bring him in towards the end of the season, and now it’s fantastic that we have been able to secure him for the next campaign.
“He did really well for us, especially considering he came here and wasn’t at the peak of his fitness.
“He made the decision to come here and sign here despite the fact he hadn’t played a lot, and that says a lot about him.
“We’ll have a happy and fit Solomon Taiwo next season and given what he’s already shown us in performances last season I think there is a lot more to come from him.”
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