The 34-year-old was hampered by concussion problems last season, but still managed to score five goals in 23 appearances. Dichio had a base salary of US$157,000 in 2008.
"I'm overjoyed with the new deal because it has been going on for a while," Dichio said in an interview with TFC's Web site. "We agreed in principle to the terms and I'm really happy because I wanted to get it sorted before I go back to England. I'm happy here and my family is happy here so I want to be here for a very long time."