The 33-year-old right-back has spent his entire career with Everton and now looks likely to end his playing days at Goodison Park after extending his stay.
Hibbert joined his boyhood team as a youth player in 1991 and made his senior debut for Everton 10 years later against West Ham.
The Liverpudlian has made over 300 appearances for the first team since then.
Although Hibbert has been restricted to just 10 competitive outings in the last two seasons, Everton boss Roberto Martinez believes his experience is valuable to the squad.
Everton confirmed the deal on their official website on Tuesday evening.
"Defender Tony Hibbert has today signed a new two-year contract with the club," a club statement read.