Yes. You can find the information about this on the Walt Disney World website
HERE. The website states:
May I upgrade my free one day ticket to an Annual Pass or multi-day ticket?
Yes, you may upgrade the free ticket to another
ticket type of greater value within the applicable upgrade window.
However, you are responsible for the incremental cost and the new
ticket may only be used by you. No changes or refunds will be given.
The value of the free ticket may not be used to combine or upgrade with
a separate single or multi-day ticket.
May I use the value of the free one-day ticket toward the renewal of my Annual Pass or Passport?
Yes, the value of the free ticket may be used to
renew your Annual Pass or Passport within the applicable renewal
window. You are responsible for any additional costs owed and no change
or refunds will be given.
Enjoy your Walt Disney World vacation and a sincere THANK YOU for volunteering.