Hansen, currently at the Tour de France and in the midst of attempting to ride all three grand tours for the second year in a row, was pleased to stay with the squad.
"If you can extend your contract it obviously means you're doing something right," the Australian said. "There are many reasons why I chose to stay with Lotto Belisol."
Hansen joined Lotto in 2011 from the HighRoad squad, making the move with Greipel.
The news follows the earlier announcements this week that another key lead-out man for sprinter Andre Greipel, Greg Henderson had also extended his contract with the Belgian-based squad.
Hansen, 32, broke through for his first victory since 2010 in May when he soloed to the win on stage 7 of the Giro d’Italia.
"I like the mentality in the team," Hansen continued. "It's nice to have goals in the team when you're going to a race and that you can help riders like Jurgen Van den Broeck and André Greipel. But I also get to go my own chance and that's important to me as well. I love taking part in Giro, Tour and Vuelta and the team gives me the opportunity to do that. And I got a puppy dog last year which I named him Lotto, so that's also a reason why I must stay with Lotto Belisol, because I can't change the name of my dog," he laughed.