The 31-year-old, who helped guide the Bluebirds to Premier League promotion last season, will be under contract until 2015.
"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," Hudson told the club's official website. "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."
Manager Malky Mackay added: "I'm delighted that Mark has committed his future to Cardiff City Football Club. He is the ultimate professional, an inspirational leader of men and a pleasure to work with on a day to day basis.
"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 Barclays Premier League as he did in captaining the players to promotion last season."
Hudson has been a Cardiff player since 2009.