The highly-rated 27-year-old has enjoyed his best season to date, with points finishes in 13 races, including four fifth place finishes.
"Everybody in the team is delighted to see Nico remain a Sahara Force India driver for next season," team principal and managing director Vijay Mallya said in a statement.
"We rate him very highly and he has done a tremendous job this year by consistently picking up crucial championship points. He's a true racer and he knows how to motivate the team."
Hulkenberg is eighth in the drivers' standings this season, three places ahead of team mate Sergio Perez.
(Reporting by Martyn Herman; Editing by Amlan Chakraborty)
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