The full-back has followed Jamie Macdonald and Ryan Stevenson in agreeing to a reduced salary to help the club cope with its serious financial problems.
Scotland Under-21 defender Kevin McHattie, McHattie, is also close to agreeing a similar arrangement.
Hamill told the Hearts official website: "It has been difficult with the club going into administration but I spoke to the gaffer and my wife about the situation and decided it was best to stay here as I just want to play at Tynecastle.
"I have been out injured for so long and missed a couple of cup finals so feel there is unfinished business here for me. I am just looking forward to pushing on now.
"It is going to be a tough season for us but I'm looking forward to getting back playing again.
"We want to help the gaffer out as it is going to be a very young team so hopefully the experienced guys can help us close that gap with us starting the season at minus 15 points. We need to stick together and focus on starting the season as well as we can."
Hearts owe £25million to Lithuanian firms Ukio Bankas and UBIG, who are also major shareholders in the club.
The were forced to appoint administrators BDO in a bid to stave off a winding up order set to be launched over a partially-paid £100,000 tax bill.
BDO say the club must sell 3,000 season tickets in the next 10 days if it is to survive and fans have rallied to the cause, purchasing 1,200 since the warning went out on Friday.
- Sports & Recreation
- Kevin McHattie
- Ryan Stevenson