The Germany Under-21 international's deal was due to expire in 2016, however Hoffmann has now put pen to paper on a two-year extension.
Hoffmann, who joined from Duisburg in January last year, has been an integral part of the Hannover side this season, making 24 appearances in all competitions.
And the 21-year-old is confident he has made the right decision to affirm his commitment to the Lower Saxony outfit.
"It was absolutely the right decision for me back then to make the step from MSV Duisburg to Hannover 96 in the first division," Hoffmann told Hannover's official website.
"Extending here now is also the right move. Both parties are happy with one another. It just works.
"I'm a steady person. Wherever I feel comfortable, I'm happy to stay longer. That was the same as MSV, so I'm happy that I've said 'yes' to a contract extension with full conviction."
