The former Orlando Pirates and Mamelodi Sundowns star played a total of 23 matches for the Bethlehem-based side in the GladAfrica Championship last season.
Stars general manager Rantsi Mokoena has now indicated to snl24.com/kickoff that the 37-year-old, who celebrated his birthday today, will continue playing next season.
Masehe played 18 seasons in the top-flight before Stars were relegated from the PSL to the National First Division last year.
He started his career as a striker and scored his first goal playing for Sundowns against Santos in 2002. What followed was an 18-month stay at Pirates before he moved to Stars in 2008.
In June this year Masehe told this website that he will only retire once the Free State side finds his replacement. This was his 12th year with the club.
Despite winning the league with Sundowns in 2006, his most memorable achievement would be when he led Stars to the 2018 Nedbank Cup trophy after a 1-0 win over Maritzburg United.
Stars, who ended three points shy of the promotion playoff places last season, have lost Ghanaian striker Daniel Gozar to promoted Swallows FC.