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McQueen, 27, has played 84 NRL matches for the Rabbitohs since making his first grade debut against the Sea Eagles in round 22, 2009. McQueen has also represented Queensland in five State of Origin matches over the past two years, and also represented the Prime Minister's XIII against Papua New Guinea in 2011.
Rabbitohs Head Coach Michael Maguire is pleased that McQueen has committed to the Club for the next two years.
"Chris has really grown as a player and a person over the last three years and has made a solid transition from an outside back to the forward pack," Coach Maguire said.
"I see a massive up-side in Chris and his continual growth in the forwards.
"His performances with our Club have led him to be selected to represent his state and that's something that he and everyone at the Club are very proud of.
"We're delighted to have agreed to terms with him on an extended contract."
McQueen is very happy to be remaining a Rabbitoh for at least the next two years.
"Playing for South Sydney and representing the Club and the Members is something I'm very proud of and something I don't take for granted," McQueen said.
"I'm in a privileged position to wear the red and green on the field and I'm proud to be the 1070th player to play first grade at the Rabbitohs.
"I always wanted to remain at the Club and hopefully we can achieve our goals and earn the success that we are working so hard for."
Name: Chris McQueen
Date of Birth: 3 August 1987
Place of Birth: Brisbane, QLD
Junior Club: Kingaroy Red Ants
NRL Games: 84 (all for the Rabbitohs)
NRL Points: 84 (from 21 tries, all for the Rabbitohs)
NRL Debut: Rabbitohs vs Sea Eagles, Brookvale Oval, 8 August 2009 (Rd 22)
Rep Honours: Five State of Origin matches for Queensland (2013-14); one match for Prime Minister's XIII (2011)