The 30-year-old is one of the more experienced players at the Recreation Ground, having won 40 caps for his country and three Lions Test appearances.
"Danny did a very good job last year under difficult circumstances. He is certainly someone who has the respect of the players, and this year conditions are better. He will be a good leader for us this season," said Bath coach John Connolly.
A tough player, Grewcock holds the dubious distinction of being only the second-ever England rugby to be sent off during an international.
He was given his marching orders against the All Blacks on England's tour of New Zealand in 1998 for excessive use of the boot.
But with discipline paramount in the professional game, Grewcock has channelled his aggression into making himself into the epitome of the modern lock and his form at the tail-end of last season helped Bath avoid relegation.
While he is certain to be on England duty at the World Cup for the early part of the season, Grewcock is nevertheless looking forward to his club responsibilities.
"It's a great honour for me to be club captain again," he said.
"Last year was tough but I enjoyed the captaincy role. The squad is coming together well with all the new faces slotting in quickly, there is so much competition for places at the moment and I am really looking forward to being captain.
"There is a great challenge that lies ahead for Bath Rugby this season and we are all focussed on re-establishing this club to its rightful place at the forefront of the domestic and European game."