Thompson, 23, plays at loose forward or hooker and he made 12 appearances for the club last season, scoring three tries and kicking one goal following his move from Oldham.
On agreeing his future with the club Thompson said, “I’m really happy to be re-signing with Oxford.
“I had offers to go play at other clubs here and abroad, but the faith the club and Tony Benson put in me in making me club captain and involving me in how to make the club better meant it would be silly not to re-sign.”
“We had a really good year in our debut season and we definitely want to improve on our 6th place and try and push for promotion.”
“I’m looking forward to getting back into pre-season and I feel I’m the fittest I have been since my Warrington days, which will put me in good stead for the season ahead.
“I want to help the boys out as much as I can and be a leader on and off the field.”
Oxford head coach Tony Benson is delighted to have his captain secured for 2014 and he said:
“He is a fantastic leader, very mature who has a lot of experience from his time at Warrington. He can make something out of nothing and leads from the front.”