Harrold has scored nine goals in 68 games for Crawley since signing from Bristol Rovers in June 2014.
The 32-year-old acted as player-manager in the Reds' final game of last season following Dermot Drummy's departure.
"I feel like I've got a bit of a point to prove after my injuries and the tough season last year," he told the club website.
Crawley striker Matt Harrold has signed a new contract to stay with the League Two side until the end of next season.