The 24-year-old featured 46 times for the Terriers last season and was vital during their successful run to the Premier League, proving to be the hero in the penalty shoot-out wins over Reading and Sheffield Wednesday in the play-offs.
Huddersfield had been desperate to have him back for their return to the top flight but parent club Liverpool have decided he will remain at Anfield for this season.
Ward says his time at the John Smith's Stadium massively boosted his self-belief and he is now looking to become the number one for the Reds.
"It was a crazy 12 months really, an unbelievable experience,” he told the Liverpool website.
“I went there to go and play some games and obviously we had the fairytale ending which was a fantastic experience that I’ll definitely never forget.
“It gives you that reassurance, playing on the big stages as well. The schedule of fixtures is a lot more hectic than it would be in the Premier League.
“Experience-wise, it was unbelievable. Hopefully that’ll hold me in good stead for what’s to come in the future.”