Alivodic joined the A-League club during a tumultuous time in February, as the Jets sought to overhaul their playing roster.
A Tuesday press release from the club speculated the 30 yer-old's future was unclear amid a second round of upheaval.
"We're ecstatic to have reached an agreement with Enver, who I believe most people who follow the Hyundai A-League would say has made an impressive impact on the competition," Jets coach Phil Stubbins said.
"When Enver arrived at the club, he hadn't played a lot of football and was somewhat underdone in terms of his conditioning.
"But he adapted quickly and after a few weeks of match play really began to demonstrate what he can offer the club and team.
"Aside from his football ability, everyone at the Jets has been impressed with Enver's attitude and approach, and he certainly displayed a clear desire to remain in Newcastle which is a great testament to the city and club," he said.
Alivodic said that he's pleased to have pledged his future to the Jets.
"I think we will show more next season," Alivodic said. "We were not happy to be last this season. In the final five games we showed that we can be better."
Alivodic is looking forward to a full pre-season with the club.
"It will be much better for my body and health," the Serbian said of spending months preparing with the team," he said.
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