The former England goalkeeper's deal at Loftus Road expired at the end of June, though he has opted to remain with the London club after their top-flight return.
Green arrived on a free transfer from West Ham in 2012, but saw Brazil keeper Julio Cesar arrive after he made an error-strewn debut in a 5-0 thrashing against Swansea City.
However, Cesar was frozen out of the first-team picture by Harry Redknapp in the Championship last term, with QPR reportedly keen to shed him from their hefty wage bill.
And Green is determined to maintain his place as first choice between the sticks after making 48 outings in their successful campaign last time out.
He told the club's official website: "I'm really pleased to have signed the contract.
"The first thing on my mind, after relaxing and enjoying winning promotion, was to get my future sorted, so I'm delighted we've managed to get everything done ahead of pre-season.
"I feel refreshed and recharged and I'm looking forward to the season ahead.
"At the start of last season all I was focused on was playing football - thankfully that happened and we got promoted at the end of it all.
"This season is very much the same. I want to play week in, week out.
"We want to aim high, but we won't get carried away. We learnt a lot of lessons last time, so we will keep our targets in-house and be fully focused on the season ahead.
"We can't underestimate the difficulties of the Premier League."
