"We couldn't be more excited for Justin to return for his senior season. He is a special talent on the field, but, more importantly, a special person and leader off the field," coach Mario Cristobal said in a statement.
The 6-foot-6, 233-pound Herbert completed 59.6 percent of his passes this season, throwing for 2,985 yards with 28 touchdowns and 8 interceptions while leading Oregon to an 8-4 record and a berth in the Redbox Bowl against Michigan State (3 p.m. ET Monday).
Earlier this month, Herbert declared himself healthy for the bowl game after suffering what was described by Cristobal as a "deep bruise" on his shoulder during the Ducks' victory against Oregon State on Nov. 23.
Herbert will have a chance to throw passes to his brother next season. Patrick Herbert, a tight end prospect, committed to Oregon in May and signed his letter of intent last week.
For his career, Justin Herbert has thrown for 6,904 yards with 62 touchdowns and 17 interceptions.