In addition to retaining the former English Premier League player, the Jets also added midfielder Mitch Cooper to their roster for next season.
Coach Gary van Egmond praised the signing, saying Bridges was crucial to the Jets on-field success.
"Michael is an important signing, especially because he brings great experience to the team and support for the younger players," van Egmond said in a statement.
"He has a great attitude at training and a level of professionalism we want at the Club, as well as obviously being a good footballer."
Cooper, who represented Australia in last year's FIFA under-17 World Cup, joins the club from Gold Coast on a two-year deal.
"Mitch is another one of the excellent young players coming into the A-League," van Egmond added.
"Last season Mitch showed he is capable of playing at A-League level when given the opportunity.
"We are really excited to have attracted him to Newcastle and think he has a bright future with the Jets."