Judd told Carlton's club website on Thursday morning he was open to playing on beyond next season depending on his desire, fitness and form, but said he had reached that stage of his career where he would only commit to one-season contracts.
"Obviously there's plenty of work still to go this year, but I'm really excited with the direction the club's heading and looking forward to being a part of it in 2014 as well," Judd said.
"You certainly can't take your football for granted when you get to 30 and over, and I guess it's safer from the club's perspective to do things one year at a time.
"So both parties are happy with the way it's worked out."
Judd, 29, is in his sixth season at Carlton after crossing from West Coast at the end of 2007.
He stepped down as Blues captain after five seasons at the end of last year, and there was subsequent speculation that this season might be his last in the AFL.
But Judd said he still had unfinished business at Carlton.
"I think I've still got a role to play with the footy club and I think we've got some potential here to play some good footy," Judd said.
Carlton football general manager Andrew McKay said Judd's one-year deal suited both club and player.
"Chris is respected as one of the elite players in the competition, one of the best of his generation and he continues to be a great asset to the club," McKay said.
"We see him as an important figure in our team as it continues to strive for success."
Judd has played 245 AFL games (134 at West Coast and 111 at Carlton), won the 2004 and 2010 Brownlow medals and captained West Coast to its 2006 premiership.
Nick Bowen is a reporter with AFL.com.au. Follow him on Twitter: @AFL_Nick
