The 23-year-old impressed Leipzig coach Julian Nagelsmann after moving to the Red Bull Arena on loan in January.
Leipzig risked losing out on Angelino when they failed to exercise their option to buy.
But despite alleged interest from Barcelona, Die Roten Bullen have managed to secure Angelino for another year.
Leipzig will also have the option to make Angelino’s stay permanent on a contract until 2025.
Angelino made 18 appearances (16 starts) in his previous spell at Leipzig, scoring once and assisting five goals.
Upon signing, he spoke of his delight at continuing his adventure with Leipzig.
“I’m delighted to be staying in Leipzig and that we carry on our journey together,” said Angelino. “My first six months with RBL have been amazing; I got lots of game time straightaway and I really like the coach and the team’s approach.
“We also had really successful Bundesliga and Champions League campaigns.
“I’m very much looking forward to the future and lots more success.”