The 28- year - aged, who arrived by the youth ranks at Middlesbrough wherever he played Barclays Leading League football, will continue to be at Bloomfield Road for just one additional calendar year, with the solution of a even more 12 months.
McMahon originally joined the Seasiders on bank loan from Sheffield United in January in advance of making the move long lasting shortly afterwards. It was the suitable -back's 2nd stint at the club pursuing a short spell in 2007.
He created 18 appearances last year and helped Blackpool preserve their Sky Bet Championship position.
Meanwhile, seasoned midfielder Keith Southern is set to leave the club having agreed to be part of north-west neighbours Fleetwood.