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Hunt, 22, played 13 NRL games for the Rabbitohs in 2016 despite tearing his pectoral muscle early on in the season.
The former Queensland under 20s and Junior Kangaroos representative overcame his pectoral injury to establish himself in the Rabbitohs' backline and involve himself in a strong back end of the season and is now ready to build on that form in 2017.
"I've really found a home here at the Rabbitohs and the boys are like brothers to me," Hunt said.
"I'm really wanted to stay and keep building on what we've done this year, so I couldn't be happier about resigning.
"I'm really looking forward to getting back into training in the pre-season and getting ready for a big 2017 season."
Rabbitohs Head Coach Michael Maguire says he's very pleased to see Hunt staying in the red and green.
"Hymel has had a strong season when he was able to get out on the field and we saw a dedication to develop his character and a desire to show a positive approach to first grade football during this time," Coach Maguire said.
"We have some young talent coming through the ranks in our outside backs and Hymel has been one of those young players adding to the depth we are seeing in those positions.
"We're excited to see him back at full fitness and seeing what he can achieve throughout the pre-season as we work towards the start of the 2017 season."
Name: Hymel Hunt
Date of Birth: 14 November 1993
Place of Birth: Auckland, NZ
Junior Club: Recliffe Dolphins
NRL Games: 17 (13 for the Rabbitohs)
NRL Points: 16 (12 for the Rabbitohs)
NRL Tries: 4 (3 for the Rabbitohs)
Previous Clubs: Titans (2013); Storm (2014-15)
NRL Debut: Titans vs Panthers, Marrara Stadium Darwin, 6 July 2013 (Rd 17)
Rep Honours: Queensland under 20s (2012-13); Junior Kangaroos (2013)