Hughes, 31, has been sidelined since the middle of last month with a hamstring injury, but returned to full training last week and is poised to give Leeds' promotion push a timely boost.
Hughes said: "It was in my contract when I first came if I made a certain amount of appearances in my second year there would be another year.
"I'm delighted to have reached that because this is the place I love being at and my family love the area as well. And under the new manager it's great to be involved.
"I'm back fit and training now. I was in the squad on Saturday and wasn't involved in it, but I can't grumble about that because the boys have done well.
"That's the one thing about this manager, if you're doing well you keep your place and keep the shirt."