Penrith have re-signed captain Kevin Kingston on a one-year NRL deal.

The rugged hooker had previously been told he was not wanted by the Panthers beyond this year but the 30-year-old will now be at the foot of the mountains for the 2014 season.

Kingston has been a key figure in the Panthers' impressive season so far and had been linked to a move to Ricky Stuart's Parramatta but Penrith supremo Phil Gould revealed on Friday the club had moved to retain him.

"Earlier this year we told our captain Kevin Kingston to go out and test the open market ... mainly because we have a player James Segeyaro that we think will advance to our number one hooker next year," Gould told the Nine Network.

"We have been monitoring the situation and Kevin only had an option to leave Sydney and the circumstances around that weren't great so we sat down with Kevin Kingston this week and worked out a one year deal.

"He will remain with the club next year. It's a great thing for the club and the player."

Captain of the Panthers since controversially taking over from club legend Luke Lewis in mid-2012 at the behest of coach Ivan Cleary, Kingston said he was happy to be staying with the club he joined in 2010 after one year with the Eels and four years with Cronulla.

"It's a privilege to be staying on at the Panthers," Kingston said in a statement.

"I love the club and the team, and my family and I didn't really want to be anywhere else next season.

"The team is working really well together and is continually improving, and with the direction the club is going, the future is very bright at Penrith.

"I'd like to thank Ivan, Gus (Gould) and the club for giving me another opportunity to wear the Penrith colours."

AAP