Carrie, 30, visited the Bills and the Saints, but opted to return to Indianapolis.
He appeared in 15 regular-season games with two starts in his first season with the Colts. He had a career-high two interceptions, returning one for a touchdown, and made 27 tackles and eight pass breakups.
Carrie played 396 defensive snaps.
“Blessed and highly favored for the opportunity,” Carrie tweeted.
The Colts also re-signed cornerback Xavier Rhodes and have Marvell Tell returning after opting out of 2020 over COVID-19 concerns. They lost safety Tavon Wilson to the 49ers in free agency but signed former Steelers safety Sean Davis to a one-year deal as a replacement.