The 35-year-old striker, who has scored 13 goals this term, had to play a set number of games and the Nottingham Post confirmed that he has passed the required target.
Manager Kevin Nolan reiterated the news and paid tribute to Stead, who turned down a move to the United States last summer to remain with the Magpies.
“Jon will be here next season,” Nolan told the Post at his pre-match press conference ahead of the League Two trip to Colchester United.
“He’s been fantastic and is up there with Adam Collin, Richard Duffy and Elliott Hewitt in terms of their performances all season round.
“I know he hasn’t had the goal output, but he has assists and has been involved in a lot of good stuff.
“I am telling you if he was out of contract in the summer he would have a number of League One and League Two sides vying for his signature. We are very lucky to have him.”
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