The 27-year-old English forward scored seven goals and provided three assists in 28 regular season appearances for the Dynamo this season, impressing new boss Coyle.
The former Derby County, West Bromwich Albion and Doncaster Rovers man has now spent three-and-a-half seasons in the USA and Canada's top flight and is expected to improve even further according to ex-Bolton and Burnley manager Coyle.
"When Giles Barnes is fresh, I have such a high opinion of him," said Coyle of the Jamaica international.
"I think he can play at any level, but what we've got to make sure we do is get the balance of the club games and international games.
"For Giles, I think you'll see next year for me he's going to light the league up and will be up there with the top, top players."