Coleman, 26, has made 228 appearances since joining the club in 2014, helping them to the North West Counties League title in 2016.
He said: “I have really enjoyed my time at Colne, we have a fantastic spirit in the dressing room which I believe is very important and I cannot wait to work under the new gaffer.
“Obviously it’s been a strange time, it’s been difficult without any football, and we still don’t have any idea when the new season will commence, but I can’t wait to get back, get started and see the fans again.
“All the squad has been sent a programme so we are ready for the start of pre-season. Reading the messages from the gaffer, I know it’s going to be tough but I do think with what the gaffer wants to achieve in his first season it will pay dividends.”
The centre back came through the junior ranks at Burnley.
Colne head coach Nathan Rooney said: “I’m delighted Alex has committed to the club. He’s a big part of how I see us playing this season.
“His dedication is a big plus for me, you need players who can not only carry out your instructions, but also pass those messages on to others and Alex can definitely do that.”