"I am so excited to return as a judge and mentor on 'The X Factor, '" added Lovato in a statement.
Lovato's new deal will help maintain some continuity on the show, which will undergo more change before returning this fall.
Last season, Lovato served as a mentor in the young adults category alongside fellow judges Simon Cowell, L.A. Reid and Britney Spears.
Take Demi Lovato, who proved her prowess as Hollywood's newest "it" girl.
But if the pressure has gotten to Lovato, she hides it well: "I just have to keep working and have fun, " she shrugs.
Other sources point to exhaustion from a rigorous Camp Rock touring schedule, something Lovato opened up about to my colleague Morgan Brennan earlier this year.
Up-and-coming starlet Demi Lovato adjusts to life in the limelight.
The biggest changes so far have involved talent, starting with "The X Factor" decision to hire pop stars Britney Spears and Demi Lovato for the fall season, enticing them with many millions of dollars.
We saw Simon as a Grinch (his face looks better in neon green), an invigorating clip show of Simon's long-running lifeless tiff with Demi Lovato, and Britney looking horrified in the corner of the screen during a montage of her other horrified faces.
By giving kids like Cyrus and Lovato an opportunity to star, rather than play the daughter or granddaughter of the star as they would on broadcast television, the Disney Channel and its rival, Viacom 's Nickelodeon network, offer an unparalleled launching pad for their careers.
In 2008, Camp Rock was written as a vehicle for the Jonas Brothers: Nick, Joe and Kevin, who were at the height of their musical careers (think Justin Bieber craziness), but it was Lovato, then 16 and a newcomer to the Disney talent stable, who was the breakout star.
By giving kids like Cyrus and Lovato an opportunity to star, rather than play the daughter or granddaughter of the star as they would on broadcast television, the Disney Channel and its rival, Viacom 's (nyse: VIA - news - people ) Nickelodeon network, offer an unparalleled launching pad for their careers.
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