Portsmouth striker Kanu has signed a new one-year contract.
Kanu has finally made the decision to stay with Portsmouth
Kanu, 31, was keen to cash in on last season's success, in which he scored 12 goals in all competitions, by demanding a two-year deal.
He has settled for a 12-month deal with a further one-year option activated if he plays a required number of games.
Boss Harry Redknapp said: "I am pleased he has decided to stay. He was our top scorer last year and now he has trained with us again and looked excellent."
Meanwhile, Portsmouth have announced that defender Sol Campbell will be captain for the new season.