Centre-back Hudson was voted the club's player of the year by their supporters last season, a campaign in which Malkay Mackay's side secured promotion to the Barclays Premier League by winning the Championship title.
The Guildford-born 31-year-old, who joined from Charlton in 2009, told the club's official website: "I'm thrilled to have secured my future with Cardiff City and that the thought of my contract is no longer in the back of my mind.
"It's a relief to have done this so early on in the summer so that we can focus purely on the football now in the build up to the season's kick off."
Mackay said: "I'm delighted that Mark has committed his future to Cardiff City football club.
"He is the ultimate professional, an inspirational leader of men and a pleasure to work with on a day-to-day basis.
"It was no surprise to see Mark voted as the supporters' club's player of the season earlier this summer, nor that he was voted as part of the PFA's Championship team of the year.
"To secure our captain on a longer-term deal this summer was on our list of priorities and I'm sure he will have the same impact for us in the Barclays Premier League as he did in captaining the players to promotion last season."
Hudson made his 150th Cardiff appearance last term and has scored 11 goals for them.
- Sports & Recreation
- Cardiff City