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.”