The defender has 12 months remaining on his contract, which he has agreed to see out following talks with Tynecastle director Sergejus Fedotovas.
Bouzid's representative Thomas Boehm said: "I have spoken with Sergey and everything is okay, so Ismael will be staying in Edinburgh for another year.
"We had interest in him but we have to respect that he is under contract. Hearts are a very good team so hopefully he will have a good season and we will see next season what is going on.
"Ismael was very close to making the World Cup with Algeria.
"He scored against Celtic last year, which was promoted around Europe, and a few teams showed some interest, but we told them he has another year's contract and that's it."
Meanwhile, Hearts manager Jim Jefferies has told his players to expect a tough pre-season training camp in Tuscany. "It's an ideal base. One thing's for sure, the players will be fit by the time the season starts," he said.