The former England centre-back's new deal will expire in June 2004 after putting pen to paper yesterday.
Boss Paul Hart told the Nottingham Evening Post: "Des is so good to have around the place. He has vast experience and is still as enthusiastic about the game as he was when he signed his first professional contract."
Walker, 37, started 29 games this season and formed a good partnership with Michael Dawson in their bid to make the playoffs.