Holmes played two games for the Saints towards the back end of the 2016 season, bringing his tally up to five AFL games following his three in 2015.
The 27-year-old was recruited with pick 36 in the 2014 Rookie Draft and Holmes became the first born and raised American to play AFL when he made his debut in Round 21, 2015.
He was elevated to the senior list in round nine this season, but this permanent upgrade shows just how far Holmes has come since joining the club.
Saints Chief Operating Officer Ameet Bains said St Kilda were thrilled to have Holmes sign on for 2017 and had high praise for the Illinois-born big man.
“We’re thrilled to have Jason commit to the club for another year as we think he’s made great strides in his development over his three seasons at the Saints,” Bains said.
“Jason is a rapid learner and strong competitor, and is a valuable part of our talented ruck team.”