Lily returned to the Bluebirds ahead of the 2024/25 campaign, having previously impressed in her first spell at the Club.
The talented playmaker scored in a 2-0 victory over Cardiff Metropolitan University in the Bute Energy Welsh Cup final in 2022.
She was also part of the side that secured a league and cup double in the following season.
Iain Darbyshire, Head of Women's & Girls' Football at Cardiff City Football Club: “I’m delighted to welcome Lily back to Cardiff City. She’s a fantastic player, technically gifted and I’m really confident that our environment will allow her to absolutely thrive and show her qualities.”