The 33-year-old former Scotland international is one of a number of Rugby Park players whose current deals expire in the summer.
Killie boss Jim Jefferies told the Scottish Daily Express: "It is great news that Allan has committed himself to the club.
"His agent told us there had been interest from another couple of SPL clubs so we are delighted to get him tied up.
"Allan has done really well for us and has been a big part of our success over the last couple of seasons and will continue to be a big player for us."