The ex-Morton man penned his new deal on Tuesday afternoon, following Paul Watson, Mark Kerr and Tom Taiwo’s re-signing last week.
Bairns boss Peter Houston said: “Joe has impressed me greatly throughout his time here. He is a dynamic midfielder who has looked extremely strong both during matches and in training.”
McKee added: “I’m looking forward to coming back with a clean bill of health. I felt welcome as soon as I came through the door.
“Since signing I had some injuries back to back so I only got to show what I could do towards the end of the season. Even then I was carrying knocks and playing with injuries.
“I’m looking forward to getting a full pre-season under my belt. I can’t wait for the season to start.”
Replacing the two goalkeepers released at the end of the season, Danny Rogers and Lewis McMinn, is next on the Bairns list. The Falkirk Herald understands David Mitchell is being lined up as Robbie Thomson’s challenger for the place between the sticks next term.
Close season rumours continue to link the Bairns with several players – the latest supporters’ stories range from Sam Stanton, Tam Scobbie and Nicky Devlin to a Rory Loy return – but as yet the club have announced no fresh faces to complement the existing squad left over from last season.