The 54-year-old took charge of the Tigers in June 2012 and led the club into the Barclays Premier League at the first time of asking before securing their top-flight status in 2014.
Hull, who reached the FA Cup final under Bruce last season, are currently in a position to stay up once again and their boss appears to have been duly rewarded for his efforts.
Speaking before Saturday’s league game at Leicester, he said: “I’m delighted because I’ve enjoyed the last two-and-a-half years. This season has been difficult at times but I’ve enjoyed it.
“What we’ve started here is about trying to establish ourselves as a Premier League club.
“When you commit yourself to a new deal the first thing to ask is ‘do you still have the energy for it?’ Those things were going through my head.
“Let’s hope we have another two-and-half years like we’ve had.
“It’s a three-year contract with a year rolling – that’s the nuts and bolts of it.”