Sanford was Cardiff’s leading scorer last season with 46 goals and 38 assists, for 84 points in 72 games.
The 27-year-old signed for Devils in 2021 after a brief stint with the Florida Everblades in America’s East Coast Hockey League (ECHL).
“We are extremely happy to retain Cole Sanford,” said Devil’s head coach Pete Russell.
“As everyone would imagine there was a lot of interest in mainland Europe but, in the end, he felt he had unfinished business here and his heart was still in Cardiff.”
Sanford won the best forward award in last season’s IIHF Continental Cup finals in Angers, France, where Devils won the bronze medal.
The former University of Alberta player was also voted onto the Elite Ice Hockey League (EIHL) second All-Star team.
He finished second overall in league goal scoring last season with 38 goals in 52 EIHL games and sixth overall in league points.
In his first season with Cardiff Sanford scored 33 goals and 36 assists for 69 points from 71 games in all competitions.
“Cole is a competitor and a pure goalscorer,” added Russell.
“In Cole we are adding a top-end talent and one of the best players in the league, a total game changer.”
Sanford follows veteran Great Britain defenceman Mark Richardson, fellow forward Riley Brandt, Sam Duggan and Josh Waller along with fans favourite Joey Martin in returning for next season.
Since Russell was appointed as the club’s new coach in May, Cardiff have also recruited defenceman River Rymsha, Canadian forward Jamie Arniel and winger Ryan Barrow.