Milne, the Saints' leading goalkicker last year, has signed a one-year contract extension to line up in 2012.
Milne, 31, made his debut in 2001 and has since played 226 matches for the Saints.
One of the competition's most effective small forwards, he has bagged a total of 459 career goals.
Milne currently leads the Saints for goals scored in 2011 with 25.
"To retain someone of the character of Stephen Milne gives us great confidence in the ongoing stability and success of the club," Saints chief executive officer Michael Nettlefold said.
St Kilda has also extended the contract of young utility Nick Winmar for two more years.
A second cousin of former Saints great Nicky Winmar, he joined the club after being taken at pick 32 in the 2009 national draft.
- AAP
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