The Scot was out of contract and could have been on his way out of the club but he has penned a new deal.
Speaking to the official website http://www.cardiffcityfc.co.uk McNaughton said:
Kevin said: "I'm delighted to have committed my future to the Club and I'm buzzing for the challenge ahead.
"There was a decision to be made this summer as I want to play first-team football. I know that I've a lot of hard work to do to make sure I can achieve that here, but I'm ready for it.
"I didn't want to look back at the end of my career and think that I never gave the Premier League a crack with Cardiff City."
McNaughton has been with Cardiff City since joining from Aberdeen in 2006.
Manager Malky Mackay said
"Kevin has been a terrific servant for this Football Club and I'm thrilled he's staying with us as we prepare to embark on the Premier League.
"Good, experienced professionals like Kevin are essential for a squad's success and I know this news will please City supporters, as much as it does my staff and I, who know and appreciate what a hard working a dedicated Cardiff City player Kevin is."
Source: Cardiff City Online