The new deal will keep the 25-year-old at the John Smith's Stadium until the summer of 2014, with the Yorkshire club having the option of an additional year.
Woods agreed a two-year contract when he joined the Terriers from Dunfermline in 2011 and has since made 40 appearances for Simon Grayson's men.
He said: "Huddersfield is the place I want to be, so it was an easy decision.
"The club has been moving in the right direction ever since I joined and I want to be a part of the future success it will enjoy."
Grayson added: "His character is exactly what we want in the squad. We're expecting even bigger and better things to come from Calum over the next few years."
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