The three-time British Supersport Champion returned to BSB this season from round seven as a replacement for Gary Mason.
And following a brace of top 10 results at Cadwell Park, he has signed a deal for the entire 2013 season.
"I am really pleased to be staying with PR Racing," the 32-year-old, who will start a BSB season for the first time in 2009, said.
"As a privateer team, we have a lot more freedom than the bigger teams, which works well on and off the track.
"Last year I was asked to ride for John and the team three days before Brands Hatch. Without any real testing it was a massive learning curve for all involved.
"By signing for the team for next season, I feel we are in a much stronger position than most teams on the grid, as we have already been through the hard part of setting the bike up to suit my riding style, which we know we were getting right, as we had such a good finish towards the end of the season.
"As a team we can now concentrate on moving forward, so I feel extremely positive about 2013 and cannot wait for the season to start."