The 31-year-old, who joined the Reds in 2014, has the option to extend his stay at the West Sussex club by a further year as part of the deal.
Harrold scored nine goals in 39 appearances last season.
"I know what he can bring. He can handle himself physically but his touch and positional play is excellent," Crawley head coach Dermot Drummy said.
Crawley Town striker Matt Harrold has signed a new one-year contract with the League Two club.