The 34-year-old helped push the R's back up to the top flight following a 1-0 victory over Derby County in the Championship playoff final two months ago.
"I'm really pleased to have signed the contract," Green told the club's official website. "The first thing on my mind, after relaxing and enjoying winning promotion, was to get my future sorted, so I'm delighted we've managed to get everything done ahead of pre-season.
"At the start of last season all I was focused on was playing football - thankfully that happened and we got promoted at the end of it all. This season is very much the same. I want to play week in, week out.
Green has made 67 appearances in all competitions for QPR following his move from West Ham United in 2012.