Townsend impressed during his time on loan at Dundee United and Scunthorpe United last term and now with the departure of a host of big names from the Hull first team, the 22-year old has expressed his desire to stake a claim as a Tigers regular.
Speaking to the club's official website, Townsend said: "I'm delighted to have got my future sorted and I'm now eager to get my head down and fight for a regular place in the team. I have been at the club since the age of eight so to come right through the system and be given another year here is great.
"Given the club's situation at the end of last season, I wasn't sure what I was going to be doing personally. I'm now looking forward to concentrating on next season and fighting for a place in the team."