The new deal will keep the 20-year-old at Rangers until the summer of 2014.
“Signing a new deal is a massive thing for me and I’m absolutely delighted,” Hutton told Blue News.
“This season I have been happy with the way things have gone and I have been given the chance to play in really big games.
“My goal after that was to keep going and try to get an extension so that I can stay at the club.
“I have that now and I am over the moon.”
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.