The Otago Rugby Football Union announced yesterday it had signed Faddes for the 2018 and 2019 Mitre 10 Cup seasons.
Faddes had earlier this season signed with he Highlanders through to the 2019 season.
"Having Matt extend his contract is great for both Matt and Otago rugby. He is a good southern man who has taken his game to another level during the last couple of seasons," Otago coach Cory Brown said.
Born and bred in Balclutha, Faddes (25) learned his trade at South Otago High School and then moved to Dunedin to study physical education at the University of Otago.
He made his debut for Otago in 2011 but it was not until the 2015 season when his speed, skill set and try scoring ability really came to the fore.
He stood out in a side which made it through to the semfinals and earned himself a Highlanders contract. He scored 10 tries for the Highlanders last year in his debut season.
He has played 33 games for Otago.
"It was my childhood dream to play for Otago and its seems surreal that I am about to embark on my seventh season," he said.
"Wearing the blue and gold is a huge honour and it has brought a great deal of pride, not only to myself but to my family. I am extremely grateful to have the opportunity to represent a province rich in history and pride for another two years."