Hill, 35, skippered Rangers to promotion back to the Premier League with victory over Derby County in the Championship play-off final just over a month ago.
He could be partnered in defence by Rio Ferdinand next season, with R's manager Harry Redknapp bidding to sign the released Manchester United defender.
The fans favourite was thrilled with his new 12-month deal and told the club website: "I was always hopeful that I'd get a new deal, so to get it sorted so soon is great.
"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."
"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. 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 moved to west London in the summer of 2010 as a free agent following his release from Crystal Palace.
The Englishman has since made 150 appearances in all competitions, winning the Supporters' Player of the Year accolades in 2011/12 and 2012/13.
He added: "It's frightening to think I've played 150 games and been involved in some of the biggest ones of the club's history.
"I've surpassed everything I thought I'd ever achieve here and that's why this club has gripped me so much."