The 29-year-old had been one of 10 senior players offered a contract at the end of the season.
He has now put pen to paper on a two-year contract at the Globe Arena, following on from the signing of former Preston North End youngster Michael Howard on Tuesday.
Shrimps’ boss Jim Bentley said: “A-Jay was excellent at times last season.
“He had a disrupted pre-season and came to us late on and obviously had a bad injury which ruined his season but he’s a quality forward, who’s worked extremely hard to get back to full fitness and now he’s raring to go and make up for lost time.
“Some of our best football last season was with A-Jay in the team and I’m sure he’ll do the business and scores goals for us next season. We’re really pleased he’s agreed a new contract.”
Leitch-Smith joined Morecambe in August last year and made an immediate impact with the club.
He had scored six goals and was their top scorer before a torn hamstring sustained against Crewe Alexandra in January ended his season.
“I am really pleased to have signed and I can’t wait for the season to start,” Leitch-Smith said.
“Last season was a bit of a nightmare with the injury but that has made me even more determined to do well this year.
“The lads finished the season really strongly and played some great stuff and I am looking forward to be involved in that again.
“There is a great team spirit here and I really do think we can do well this year.”