The Tigers are one point away from officially retaining their Premier League status as they currently reside 13th in the table with 37 points.
As well as keeping the club in the top flight, Bruce is preparing his side for the FA Cup final against Arsenal at Wembley on May 17.
"Steve has done a great job," acting chief executive Ehab Allam told the Hull Daily Mail. "He has proved to be a very good manager this season.
"We brought him here because of that, and he has lived up to his reputation. He has exceeded all our expectations this season."
Hull have three league games remaining, the next of which is away to Aston Villa on Saturday.