The midfielder left Queens for then Championship rivals Hibernian in 2015 on a two-year contract, but suffered a groin injury which is viewed as having limited his impact at Easter Road.
Having left Hibs by mutual consent, he made his return to Palmerston during the last campaign on a short-term deal — but has now agreed a new one year contract.
Carmichael will now be aiming to put his injury behind him, and help Queens push for promotion next season.
Queens manager Gary Naysmith, who has been in Ireland to further his coaching badges, said: “As we continue to build a squad for 2017/18, I’m happy that Dan has decided to extend his stay at the club.”
Carmichael commits to Queens
THE LATEST player to put pen to paper and commit to Queen of the South ahead of the next campaign is Dan Camichael.
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Moat Brae money bid
EFFORTS are being made by Dumfries and Galloway Council to claw back about £1 million of grant funding that they gave to support Moat Brae
