The 26-year-old, who has progressed from the club’s academy, enjoyed a career-best campaign in 2017, featuring in every domestic game and hitting 800 first-class runs, including a career-high 142 against Gloucestershire in September.
Hughes was also a mainstay in the county’s limited-overs teams, firing more than 350 runs and topping the club’s batting averages in the Royal London One-Day Cup. Marking a memorable year, Hughes was awarded his county cap in September and was named player of the year at the club’s end-of-season awards evening.
Captain Billy Godleman said: “Alex is a great lad and works hard at his game. He offers us a range of skills across all forms and we’re pleased to see him commit his future to the club.
“He is developing into a high-class batsman, a very capable bowler and an exceptional fielder. He is a real team man and an individual we can build a side around for years to come.”
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Hughes said: “I’m delighted to sign a new contract. Hopefully I can repay the club’s faith in me with more good performances.”