The 30-year-old Scotland international scored 33 goals in 278 appearances during his nine years at the club and also generated interest from rivals for his signature.
"I was aware of the speculation and some of the stories were true. I had a good sit down and think about it - did I need a new challenge? What more could I do with the Club?," said Morrison, who missed large parts of last season with injury.
"I spoke with my family, the Chairman, Richard Garlick and they told me their vision about where we go from here... Now I hope that we can push the club on again because we all have to accept that since finishing eighth we haven't done as well as we wanted to."
(Reporting by Shravanth Vijayakumar in Bengaluru; editing by Sudipto Ganguly)
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