The 28 year old joined United on a free transfer from Nottingham Forest last summer and scored 15 goals last season for the Bramall Lane club.
"I think the squad is stronger than last year.
"The manager has signed some really good players and there's no reason why we can't make it next season.
"We want to be challenging for the Premiership and that's somewhere that I'd like the chance to play." Lester told Yorkshire Sport.