Houghton, who celebrates his 35th birthday later this month, has made 435 appearances for the Black and Whites since his debut in 2007, leaving him fifth on the club's all-time list.
The Hull-born favourite has won two Challenge Cups with his hometown club and was the Super League Man of Steel in 2016.
Houghton feels he still has plenty to offer after extending his career.
“It does feel like a big weight off my shoulders now I have made a decision on my future and I’m really looking forward to continuing into 2024," he said.
“Part of the reason why I wanted to extend my time was because I still feel fit and healthy. I truly believe I still have lots left to give and that played a big role in helping me make my decision over my future.
“It’s also been down to enjoying my rugby in 2023. I feel like Tony (Smith) is bringing the best out of me and that’s all I really want as a player. I feel like my style of play suits his vision, so we’re getting the best out of one another.
“I’ve still got that fire in my belly to keep improving, both on a personal level and as a group."
Houghton is staying on at a time when a host of experienced players are on their way out of the MKM Stadium.
Hull-born pair Scott Taylor and Jamie Shaul are retiring, while Adam Swift, Jake Clifford, Chris Satae, Andre Savelio and Brad Dwyer have agreed to join new clubs.
Joe Lovodua, Ben McNamara, Connor Wynne and Jude Ferreria are also moving on.
Smith expects Houghton to continue to set the standard next season.
“Danny is an exceptional player," said the Hull boss. "He is one to never shy away from the tough stuff and he will always try to make a difference, which makes him a key member of the squad.”