The 24-year-old initially joined the Sharks in 2010 but was loaned out to Macclesfield in 2011 after struggling to force his way into contention for a first team spot.
However, he has proven his quality since making his senior debut for Sale in 2011 and now boasts 97 appearances, scoring 149 points.
Addison impressed last season but saw his campaign ended prematurely due to a foot injury picked up against Saracens.
The Cumbrian-born back captained the side at times last term and insists it is an honour to get the role on a permanent basis.
Addison said: "When Simon, Ged and Dimes approached me about being captain, I accepted immediately. It is a huge honour to captain the club I have grown up at as a professional.
"I am excited by the challenge and looking forward to leading out the boys."