The deal, announced Monday, also includes a club option for the 2026 season.
The Yankees did not disclose financial terms, but Hicks will make $70 million over the first seven years, according to ESPN and multiple reports.
“He’s a big part of this team and a big part of our success … I always love playing by him,” said Yankees OF Aaron Judge. “To hear he got seven years, we’ll be playing together for a long time.”
The deal, which will start this year, was first reported by the YES Network.
Hicks, who was scheduled to become a free agent after this season, is coming off his best career year in 2018, when he batted .248 with career highs of 27 home runs and 79 RBIs.
The switch-hitting center fielder has emerged as a valuable player for the Yankees, with manager Aaron Boone recently referring to Hicks as “maybe the most underrated player in the game.”
Hicks, 29, is a career .236 hitter in parts of six seasons with the Yankees and Minnesota Twins.
ESPN’s Coley Harvey contributed to this report.