I think for stability reasons it would be important to offer him a 2 year deal. After the fall out from Junior, it can only be compounded by finishing up another player early (if only his peers see it as early). All the clubs extend the contract of some older players, in my opinion to ensure that all the 28 / 29 yo players don't pack there bags thinking there time is close to over at the dees so lets go somewhere I can play until i am 32, 33, 34.... We must sign him on two years.
Forget the captaincy, that will take care of its self and should be up to the playing group. If he is seen by his peers as the best leader he will get it again. I doubt he will get the captaincy though, as better options are beginning to come of age and maturity.