The 36-year-old former Arsenal and Juventus goalkeeper has played 22 times for the Bundesliga club, returning to the side recently due to an injury to Marwin Hitz.
He has done enough to keep his place with Hitz back in contention, and enough to earn another year on his contract.
"I've stressed many times that Augsburg and the Bundesliga are just the right challenge for me at the twilight of my career," he said.
"The team and the whole club are developing so well. Since my bones are also playing along, and I feel fit, I would like to continue being part of this development next season and carry on savouring the fantastic atmosphere in the Bundesliga and particularly in the Augsburg Arena."
Augsburg's director of sport Stefan Reuter is also pleased to be able to count on the Austrian for another year.
"Alex Manninger is an absolute model professional who always puts the team first," he said.
"Not only have his performances made him a cornerstone of our side in the second half of this season, but he was equally important last season and will help us in the future too with his sporting and human qualities."