However, fellow Bangladesh stars Shakib Al Hasan and Taskin Ahmed were released by MI Emirates and Sharjah Warriors respectively.
Mustafiz played eight matches last season before returning home due to BPL commitments, taking 15 wickets at an average of 15.53 and a strike rate of 11.50. He finished among the tournament’s top five wicket-takers.
Dubai have also retained West Indies all-rounder Rovman Powell and signed Marcus Stoinis and Noor Ahmad.
Shakib, meanwhile, endured a disappointing campaign with MI Emirates, scoring 115 runs in five innings at a strike rate of 122.34 and taking only three wickets in eight matches.
Taskin made a promising ILT20 debut for Sharjah, claiming nine wickets in six matches at an average of 15.44, but was still released. Sharjah retained only Sikandar Raza and added Adam Milne, James Vince and Waqar Salamkheil.
Elsewhere, Gulf Giants have signed South African power-hitters Heinrich Klaasen and David Miller, while New Zealand opener Finn Allen will make his ILT20 debut with Abu Dhabi Knight Riders.
The ILT20 auction will take place in Dubai on October 1, with teams allowed to build squads of 18–23 players. Each franchise can also add one player through the wildcard rule after the auction.
The fifth season of the ILT20 is scheduled to begin on November 22.