The 32-year-old will remain with the Tigers until June 2028 after making 54 appearances since joining from Real Salt Lake in January 2025.
Crooks has contributed eight goals and five assists during his time at Hull.
He played a key role in their promotion-winning campaign last season, featuring 35 times and starting all three play-off matches.
The Leeds-born midfielder also provided an assist in the semi-final victory over Millwall before making his Premier League debut against former club Manchester United.
“It’s great (to sign a new deal). There was more push from me than there was from the club to be fair,” he told club website.
“I have had a great time here so far, getting to know all the lads, the staff and the people around the place. I haven’t got anything but good things to say. It’s been successful and long may it continue.
“We’re a real tight-knit group and we’ve had more additions this year, but we still have a good core and the new additions have been great so far. From my side of things, it was a no-brainer!”