The 29-year-old Ireland international follows Nick Montgomery, Alan Quinn and Derek Geary in committing to the Blades, despite their relegation to the Coca-Cola Championship.
Manager Bryan Robson told the club´s official website, www.sufc.co.uk: "After looking after Monty (Montgomery), who has proved his worth on the pitch, particularly last season, I´m now delighted Paddy has followed suit and is settled."
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