The pacey defender made 36 appearances for Darrell Clarke's promotion winning side last season and has agreed a new and improved two-year deal.
Chris Postle, Daniel's agent, has worked very closely with key members of the Club to get this deal over the line to the satisfaction of both parties.
Leadbitter told the club "It's great to have signed another deal, the past two years have been the most memorable and enjoyable of my career so far.
"With the spirit in the group we had last year there's no reason why we can't go further."
Daniel Leadbitter joined the in the summer of 2014 and made his club debut against Grimsby Town on the opening day of last season.
The former Torquay United man scored his first goal for the club in a 3-2 win against Lincoln City on 13th September and was on the bench for last season¹s Play-Off Final.
Having secured another member of last seasons promotion winning squad on a longer contract, Rovers Chairman Steve Hamer is happy with the progress being made so far, "It's another clear indication that we want to reward and keep our most talented players and I for one will look forward to watching Danny playing at a higher level next season.
"He's a smashing lad and could go a long way in the game, hopefully with us at Bristol Rovers"