The England Under 20s openside, currently sidelined after being injured during the Six Nations, has signed a new one-year deal at Headingley.
Bainbridge, 19, is Carnegie’s leading scorer this campaign having scored 16 tries in just 13 games, form which has understandably drawn attention from Premiership clubs.
The Academy product was due to be out of contract at the end of this season but has ignored other interest to commit to Bryan Redpath’s side.
He said: “I am delighted to be staying at the club.
“I know there has been speculation in the media about what was happening but I spoke to director of rugby Chris Gibson and academy director Andy Rock and expressed my wish to stay at the club.
“I have come through the academy, made my way into the first-team and now delighted to be staying on for at least another year.”
Following his toe injury, Bainbridge hopes to return to the side in time for the Championship play-offs at the end of next month, and Redpath is pleased to have him on board for 2016-17, too.
“Josh has made a big impression on the squad this year and that was rewarded with his England Under 20s selection,” he said.
“He has come through the group and earned his stripes with some big performances this year.
“I think the important thing for him next year is to consolidate that position at number seven and make a bigger physical impression on the game.
“He was getting there before his injury and I am sure he will do that given another off-season with us.
“We believe he has a big future in the game and I am delighted he is with us for another year.”