The Portuguese goalkeeper has agreed to extend his stay at Stamford Bridge and says he is looking forward to working again with manager Jose Mourinho
The Portuguese goalkeeper was brought to Stamford Bridge in 2006 from Nacional by Jose Mourinho, in his first stint at the club.
The 37-year-old has gone on to make just 39 appearances for the Blues but says he is happy to remain in west London.
“It feels really good to sign a new contract for another year at the club, I'm very proud,” he told the club’s official website.
“I'm really pleased to be part of this great squad and I'm looking forward to working once again with Jose Mourinho.”
Hilario's new deal means Chelsea are well-stocked for goalkeepers having signed Mark Schwarzer from Fulham as back-up to first choice Petr Cech and youngster Jamal Blackman also in the squad.
The Blues have also sent out Belgian keeper Thibaut Courtois on-loan to Atletico Madrid for a third straight season.