Des handed Lyttle deal
The 30-year-old former Nottingham Forest man has been at the club since June 2000, after making a free transfer move from Watford.
Lyttle believes that he can still make a contribution to the team and has signed the deal in order to win his place back in the side.
"I haven't re-signed for the sake of it," said Lyttle. "I won't just be picking up my money, I want to win my place back."
"A lot of things will change next season now we're in The Premiership. I've spent a good few years at that level and I know I can play there."
The defender also revealed that he could have signed a deal to stay with the Hawthorns club last December, but decided not to sign due to his absence from the starting line-up.
"I was offered a contract at Christmas but I wasn't in the team. In the end I decided to keep my options open, because I wanted to play," concluded Lyttle.