He was handed a short term contract last November when the Ospreys were without two second rows on international duty and a further six through injury. He made two appearances in an Ospreys shirt as well as featuring regularly in the Premiership with Swansea.
"I'm delighted that I've been able to sign a new contract which means that I'll be staying with the Ospreys for another year. It's been up in the air for a while, I've been waiting to find out what was going to happen, but it's great that I've got the opportunity to stay," said Goode.
"There is real competition for places in the second row here, but it's a long season and I'd like to think that I'll get chances to show what I can do. My strengths are in the set-piece, areas like the line-out and restart, but the work I've done with the guys behind the scenes has helped me to improve in the contact area and I'm a better player for that.
"I'm looking forward to challenging for a place and hopefully really making an impact in an Ospreys shirt."
The Ospreys have lost Lyndon Bateman, who has retired, from their second row stable and Filo Tiatia, who has hung up his boots to take a full time coaching role at the club, was also used in the second row on occasion.
Ian Gough and Alun Wyn Jones are currently in New Zealandwith the Walesteam and fellow international Ian Evans is set to return fully fit for next season. But Goode's addition to the squad will give the Ospreys extra depth in a vital area,:
"James has made a huge impression since he got here. He's a fantastic professional who has done so much work behind the scenes, not only on improving his own game but to assist the other second rows and to help the team prepare for matches," said Ospreys forwards coach Jonathan Humphreys.
"His attitude and willingness is second to none, and we believe that he can play for us at the highest level. It is a very strong department for us, which will provide him with a challenge, but the flip side of that is there will be times during the season where we could be without three or four players in that position."