Three seasons later, with his contract set to expire, Foote was traded from the Blue Jackets back to the Colorado Avalanche in exchange for two conditional draft picks on February 26, 2008. The trade occurred amid speculation that the Blue Jackets were trying to re-sign Foote to keep him in Columbus, but could not meet Foote's asking price. Later that night, he arrived in Calgary during the first period to play against the Flames. Foote managed one goal and 15 assists for a total of 16 points in 75 games with the Avs and Blue Jackets combined.
On June 30, 2008, Foote agreed to re-sign with the Avalanche with a two-year $6 million deal at $3 million per season. His first full season back in Colorado was cut short by injury and he managed just 42 games. Further major injuries to key players in the lineup resulted in the Avalanche finishing in last place in the Western Conference. The following off-season, long-time Avalanche captain Joe Sakic announced his retirement. As training camp was set to begin for the 2009–10 season, Foote was named Sakic's successor on September 11, 2009, becoming the eighth captain in franchise history (including the Nordiques) and just the second in Avalanche history.