The defender signed an 18 month contact at the New Bucks Head in March 2022, after an impressive spell on loan from Solihull Moors.
It was to be a difficult first full campaign at the club as the Bucks suffered relegation to the Southern Premier League.
Following discussions with manager Kevin Wilkin, Piggott has now penned a one-year extension and becomes the second player to commit to the club ahead of next season, after Brad Bood signed a new deal.
Piggott, who has become a popular figure among fans, is keen to help the club return to the second tier of the non-league system as soon as possible.
He said: "I am delighted to extend my stay at AFC Telford United and be part of pushing the club back in the right direction.
"It was a huge disappointment for us last season and I am determined to help play my part to help get the club back to where it should be."