It's a massive boost to the club as they prepare to kick off their Aviva Premiership Rugby campaign against Northampton Saints this Sunday and comes soon after England winger Charlie Sharples also agreeing a new deal.
A sought after commodity, Gloucester had to work hard to secure the services of 28 year old Hamilton when he joined the club from Edinburgh in the summer of 2010.
Despite his preseason preparations being disrupted by a virus, he went on to have a massive impact at Kingsholm in his first season, making 20 appearances and playing a pivotal role in the successful LV= Cup campaign.
The 6ft 8" Swindon born second rower has settled in well to life in the county and revealed this week that it had been an easy decision to extend his stay.
"It's a privilege and an honour to sign a contract extension. I've found my home so there was never any thoughts about going anywhere else. This is a working class club that looks after not just players but families."
He and Sharples, who were both in contract years, have signed new contracts early and Hamilton hopes that they won't be the last.
"I won't have to twist anyone's arm to stay next season, I think everyone whose contracts are up wants to stay, so there's no need for any of us to be making the case, everyone's already sold."
He went on to reveal that Head Coach Bryan Redpath had got things moving and that it had been an easy process from there.
"Brush told me at the end of last season that he wanted me to be a big part of what happens at the club moving forward, and I was delighted. He sat me down and we had a chat and then it's always been on the cards since then.
"It's never been about the money coming here anyway, so there would never have been a lot of haggling or anything, but that initial conversation only excited me more about the future so it was always going to be a formality.
"I love it here but so does my family, we've found our home and we're very excited about what's to come."