The 31-year-old winger will remain part of the squad as the club prepares for its return to the Premier League.
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New manager Gary O’Neil is understood to have pushed for Burns’ retention to maintain continuity within the squad.
The Wales international has played a key role in Ipswich’s recent success, featuring in three promotion campaigns since joining from Fleetwood Town in 2021.
He has made 164 appearances for the club, scoring 30 goals, and will now aim to help the Tractor Boys establish themselves in the top flight next season.
