The 31-year-old signed for the Welsh outfit in 2009 and has been a first-team regular ever since, making 33 appearances as the Bluebirds won the Championship last season, with manager Malky Mackay pleased to resolve the centre-back's future.
Mackay told the club's official website: "I'm delighted that Mark has committed his future to Cardiff City. He is the ultimate professional, an inspirational leader of men and a pleasure to work with on a day-to-day basis.
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"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 Premier League as he did in captaining the players to promotion last season."
Hudson was equally as happy to have signed an extension at Cardiff, as the countdown to their first Premier League campaign continues.
"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," the defender enthused.
"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."