Evans has made 31 appearances for the Robins since signing from Yeovil Town and has scored one goal in the process.
“It’s great that my time at Bristol City has been extended, and I’m excited to see how we can push on next season, said Evans on the clubs website.
“Last season was tough for the group and on a personal level with my injury, but we have a great team environment and kept fighting until the end, which saw us through.
“Rehab is going well and I’m determined to get back on the pitch with my team-mates as soon as possible.”
Manager Tanya Oxtoby added: “Gemma is such an important part of our squad both on and off the pitch, and a pleasure to work with.
“She has thrived in our environment, and we have only just scratched the surface of what she is capable of. The goal this season is to build some consistency in her outstanding performances and see if we can get that level week in, week out.
“I’m really pleased we have the opportunity to work together for another season and watching her develop into the player we all know she can be.”