The 42-year-old athlete has been absent from competitive matches since his retirement following his 188th Test appearance against West Indies in July 2024.
"Following discussions with the club, Anderson will play on during the 2025 season and has put pen-to-paper on an initial season-long deal following the end of his ECB central contract," Lancashire said in an official statement.
Anderson’s most recent first-class appearance for Lancashire came in June 2024 when he took 7/35 against Nottinghamshire in Southport.
Anderson is set to make his first T20 appearance since 2014 this summer.
'Excited to sign this contract'James Anderson said he is incredibly excited to sign the contract with Lancashire and cannot wait to play for the county again.
“I am incredibly excited to sign this contract with Lancashire and resume playing professional cricket again next season. This club has played a huge part in my life since I was a teenager, so to have the opportunity to wear the Red Rose again and help the side in both red and white ball cricket is one that I am really looking forward to," said Anderson.
“I have been working hard on keeping my fitness levels high and continuing to bowl regularly during my time as a coach with England throughout the winter, with the aim of being able to hit the ground running when the county season starts in April," he added.
Speaking further, Anderson said, "I love playing at Emirates Old Trafford and to have the chance to walk out and bowl in front of our Members and supporters again this summer is going to be really special.”
Anderson made his Lancashire debut a quarter of a century ago in 2001.
Lancashire's director of cricket performance, Mark Chilton, said: "We have been in open dialogue with Jimmy since his international retirement, and our position has been clear from the start. It is fantastic news for all connected with the club that he has chosen to continue his playing career with Lancashire."
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