Caufield, 19, was selected 15th overall by the Canadiens in the 2019 draft. He recorded 19 goals and 36 points in 36 games during his freshman season at Wisconsin and led the Badgers in scoring.
"This additional year in the NCAA will benefit Cole and will allow him to continue developing his skills within the Badgers' environment," general manager Marc Bergevin said in a statement. "Cole is an important part of the Montreal Canadiens' future and we will continue to follow his development with interest."
Two of Caufield's teammates from this past season have already decided to leave and ink pro contracts. K'Andre Miller signed with the New York Rangers and Alex Turcotte joined the Los Angeles Kings after the Badgers' season concluded March 8.