The 25-year-old has impressed during his time in England, having joined Worcester in 2013, but he is yet to tie down a regular starting spot.
Hammond is the latest in a string of players to land a new deal as Director of Rugby Alan Solomons looks to bring stability to the squad.
The wing insists it was an easy decision to commit to fresh terms and hopes he can now kick on and force his way into the starting XV.
Hammond told the club's official website: "I've been here a long time now and Worcester has certainly become my home.
"The Club is renowned for giving opportunities to young players and that was something that attracted me here in my earlier years and something which is still evident today.
"Now I want to push on and fight for my place in the first-team where we have some exciting and talented players all driving competition."