The road racing legend, a 23-time TT race winner, will be 51 when the next TT comes around in June.
“Riding a Fireblade again at the TT last year was something special so it only felt right to continue for another year,” he said.
“I couldn't feel more at home with the Honda team so I need to say a massive thank you to Harv and Neil.
“Celebrating 100 TT starts with the team and riding with that one-off livery and all of the history that we have was really something else.
“We also managed to crack the top five last year on the superbike, which was great, but I'm hungry for more. I just want to get started now and go racing again!”
McGuinness missed the iconic event in 2017 and 2018 due to injuries sustained at the North West 200. He returned in 2019 but the pandemic then cancelled the event in 2020 and 2021 events.
Last year could have been McGuinness’ final Isle of Man TT - but now it is confirmed that he will race on.