The wide receiver missed the 2004 and 2005 seasons with knee and hamstring injuries.
"It is definitely a blessing to be able to play one more season at Texas," Shipley said. "This is such a great place, and I've had an unbelievable experience. Obviously, it started slow due to the injuries, but I couldn't be happier with the NCAA's decision to give me one of those years back."
Shipley was named a third-team All-American after posting 79 receptions for 982 yards and 11 touchdowns this season. His 79 receptions rank second on UT's single-season list.