The 33-year-old Dane, who won the final stage at the 2008 Vuelta a España, and has won both a silver and a bronze medal at the road-race world championships, in 2010 and 2008, respectively, spent the 2017 season at Astana before signing for EF-Drapac this season.
It is his second stint at the team headed by Jonathan Vaughters, having ridden for them in their guise as Cannondale-Drapac during the 2016 season.
Breschel's last race win came in 2015, when he took two stage wins at the Tour of Denmark while riding for Tinkoff-Saxo, and these days his services are more appreciated as a road captain, helping the squad's younger riders during races, while also ready to be employed as a lead-out man, or even go for the win himself.
"It was totally a no-brainer for me," Breschel said in a team press release. "I was hoping the whole year to re-sign, and I'm happy it worked out.
"I'm thrilled to be part of the team for next year, and I'm already looking forward to the Classics," he continued. "Helping a guy like Sep Vanmarcke gives me a lot of inspiration. I like riding for this team – there's a democratic feel, with no rigid hierarchy, and a friendship among riders. And we turn it on when we need to."
Vaughters added that he was thrilled to have Breschel on board for another season.
"He's a solid rider in many different types of races," said Vaughters. "OK, so in the Classics we know he's reliable as a helper and also capable of striking off on his own, should tactics allow. But also in a road captain sense, he's very good. He knows where guys are supposed to be and when, and we can trust him to keep riders in good position. He can lead out a sprint, too."
Having missed out on a place in this year's Tour de France squad, Breschel's next race for the team will be the Clasica Ciclista San Sebastian on August 4 – a race the former Danish national champion finished 12th at in 2011.