The versatile defender made 21 league appearances for Luton this season, scoring against Arsenal and Newcastle United.
Osho was handed his maiden invitation by Nigeria for the friendlies against Ghana and Mali in June but had to pull out of the squad due to injury.
His compatriot, Fred Onyedinma, was, however, released by the club.
Another Nigerian, Elijah Adebayo, was among the players retained by the modest side.
Luton Town will compete in the Sky Bet Championship next season following their relegation from the Premier League.
Coldplay thrilled fans with a special song called Orange dedicated to Luton Town Football Club during its set at Radio 1’s Big Weekend.
The group, fronted by Chris Martin, headlined the festival at Stockwood Park, in Luton.
There had been a campaign by local football fans for the group to change the lyrics of its song Yellow to Orange. Instead Martin performed an ode to the town.
It referenced The Hatters playing in orange, while the team’s rivals Watford wear yellow.
Martin said that as he has grown older he has learned that if people “come at you with hatred and aggression” you can respond with “love”.
To huge cheers, he introduced the new song he said he had finished in his hotel room the night before.
He called it a “once-in-a-lifetime thing” – and said it “may not be good enough” to be heard again.
It opened with the lyric: “It’s hard to be a football fan here in Luton Town.”
