"Julian is a homegrown talent and I am thrilled that he will be taking the field for both Wellington and the Hurricanes for the next two years."
Savea, the former International Rugby Board junior player of the year in 2010, had been courted by the Chiefs and the Crusaders, but said he was looking forward to renewing his commitment to the Hurricanes environment.
"There's a great culture building within the team and I know we all want to do big things this season.
"We all have that same goal," Savea said.
Hurricanes coach Mark Hammett was understandably a happy man.
"We've seen him grow and develop over the last two years through his involvement with the Hurricanes and the All Blacks, and we want that to continue.
"He's gone from being this quiet guy going about his job, to a real leader within our squad," Hammett said.
"Julian's an exciting player for the fans and that's an important part of it as well."