Draper has made over 70 appearances for Inverness since joining from Macclesfield Town in 2012 and was part of the team which lost to Aberdeen on penalties in Sunday's League Cup final.
The 25-year-old has provided the club with a lift by pledging his future to Inverness and Draper had no qualms in agreeing to stay.
"I am delighted to put pen to paper, we have been in discussion for a couple of weeks now but we have been busy with games," said Draper.
"I am really enjoying my time up here, I love everything about the club and Inverness so there was no reason not to commit my future to the club."
Inverness boss Hughes added: "We have been working with Ross and his agent for a couple of weeks now and we are absolutely delighted he has seen that his future lies with our club.
"He has been an ever present in the squad since first signing in 2012 and we have now secured the majority of this year's squad on long-term deals which augurs well for the future and the stability of the playing staff for next season and beyond."