Horne, 30, who celebrated a testimonial in 2010, has made 348 appearances, scoring 124 tries, since making his debut against Leeds as a 16-year-old in 1999.
"I'm pleased the club have offered me another year," he said. "I still know I've got plenty of 'footy' in me and I can't see myself playing anywhere other than Hull. It's my club and my town and I'll keep giving it all I can until the day I know it's time to hang up the boots."
Hull coach Peter Gentle said: "There is no doubting that Richard is one of the club's greats and when he finally does hang up his boots he will have a place reserved in Hull FC folklore.
"He is a one-club man, black and white through and through and for that reason it was an extremely easy decision to offer him another contract extension. His experience and character plays a big part for us, as does his utility value, and that makes him an integral part of the squad."
Meanwhile, Hull have confirmed that newly-appointed captain Gareth Ellis has suffered a stress fracture to his foot, although he does not need surgery.
The England international, who sustained the injury in the warm-up to Hull's opening match at Leeds 12 days ago, will wear a non-load bearing boot for six weeks, at which stage his condition will be reassessed and a firmer date can be set for his return.
"Six weeks is about the best we could have hoped for so that is a big positive for us and then from there we can see how he is," Gentle said.
"We have to be realistic. He'll probably need at least four to five weeks from getting the boot off to get back running on the foot and build up his fitness again, so we're looking at something around 10 to 12 weeks."
Hull say the break is not related to Ellis' previous foot injury suffered during his final year with Australian club Wests Tigers.
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