The 35-year-old captained the side to an immediate return to the top flight via the Championship play-offs last season and will now embark on a fifth campaign at Loftus Road.
"I was always hopeful that I'd get a new deal, so to get it sorted so soon is great," he told the club's official website.
"I've enjoyed some great experiences at QPR over the last four years, I'm settled here, and I'm excited about being part of this club for another season."
But Hill is in no doubt as to the size of the challenge he will face in trying to pin down a starting spot when the new term begins at home to Hull City on August 16.
"Every year I always think it will be tough to keep my place in the side, and this season I've brought myself round to thinking that I won't play as much and new players will come in," he added.
"Maybe I'll need to take on a different role this season. The most important thing is the club and how that progresses. I want to take a keen interest in that."
Hill, who joined from Crystal Palace in 2010, is a fans' favourite at the London club and won the supporters' player of the year award in the 2011-12 and 2012-13 campaigns.
