A graduate of the Hibs academy, the 25-year-old made his first-team debut in 2005 and has since recorded 172 appearances - winning last season's player of the year award.
Stevenson, the club's longest-serving player, said: "I'm really pleased to have agreed another contract with Hibs - this is a special club and I feel privileged to be a part of it.
"If somebody had told me when I first joined Hibs as a 14-year-old that I would still be at the club 11 years later then I wouldn't have believed them.
"Hibs have played a big part in my life over the years - it's my club - and I'm really excited about the future and what we are building here."
This season Stevenson has been utilised in centre midfield, left-back and right-back but he stressed that he is always willing to put the needs of the team first.
He added: "I'm happy to play wherever the manager decides I should play - I will always give my all for Hibs, although I've yet to play in goals or up front."
"I've been signing one-year deals so it's nice to have a two-year deal. I have enjoyed it, I've had ups and downs but for the most part I've enjoyed it.
"The club have treated me well over the years so, as soon as I was offered the new contract, I took it.
"It's a big club so I don't see any reason why I should move."
The undoubted high of Stevenson's eight years at Hibernian has been the 5-1 League Cup final victory over Kilmarnock in 2007, when he was named man of the match.
But 12 appearances under John Hughes during the 2009/10 campaign left him contemplating his future.
"There have been times in the past when I thought about leaving when I wasn't playing," he said.
"I must have signed a contract with every manager which is strange.
"I've found myself out of the team at times and had to prove myself. I've proved myself a few times now and that must be testament to myself.
"You become a fan of the club. Even when you're not playing. There is nothing more I want than the club to do well.
"I love the club, it means a lot to me and it always will."
Stevenson became a father for the first time last year and is happy with life on and off the pitch.
He added: "Hibs are part of my life now and I've settled in Edinburgh, I've been living here for three years now. Sometimes people think it's better to leave Hibs, then they struggle to get another team."
Manager Pat Fenlon believes the player has a key role to play in the continued development of the club.
He said: "Lewis has a fantastic attitude and he always works incredibly hard for the team - he is a good professional.
"We are building a club here and one of the key factors behind making that become a reality is continuity, which means retaining important players.
"Ever since I joined the club, Lewis has been great and never sells himself short. He always gives everything for the shirt and I'm delighted to have him on board for the next two years."
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