The 26-year-old Brummie’s new contract keeps her at the club until the end of December 2014, with a further one –year option in place after that.
Hall Green-raised Carney is Blues through-and-through having joined the club at the age of 11 before progressing to the international stage as an England regular.
Carney currently has 87 senior caps and 16 goals for England and also represented Team GB at the 2012 Olympics.
Having made her first-team Blues debut at the age of 14, Carney also went on to enjoy a successful two-and-a-half year stint with Arsenal where she gained a whole host of silverware.
A spell in the USA followed with Chicago Red Stars before a successful homecoming saw her inspire Blues to successive runners-up spots in the FA WSL as well as lifting the 2012 FA Women’s Cup.
Meanwhile striker Rachel Williams has left the club by mutual consent. Everybody at Blues Ladies would now like to take this opportunity to wish Rachel well for the next step in her career.