The Scottish striker is hoping to help take the club forward and go one better than last year.
"I am really pleased to have sorted things out," he said. "I enjoyed last season. Like the other lads, I want the opportunity to go that step farther than last season."
McCormack was City's top scorer last season. The news of his new contract is good news for City fans who can look forward to seeing him play in the new stadium this coming season.