The 23-year-old from coastal Taranaki said he had enjoyed the supportive environment at the Hurricanes, and looked forward to working with the new coaching staff next year that will be led by Chris Boyd.
"We have a relatively young team here, and I really enjoy the role I play within the squad – it's been great for my overall rugby development," Barrett said.
"While some of our results this year have been a bit up and down, I feel as a team we have improved in what has been a really tight competition and hopefully we have some luck this weekend so we are still in with a chance of making the playoffs."
Barrett joined the Hurricanes in 2011 and has since played 52 matches for the club, scoring 594 career points – 209 of those in 2014.
He said while he did have other options to consider, including a keen pursuit from the Blues, he felt he still had unfinished business with the Hurricanes.
"I'm really happy that I've committed to the Hurricanes, and look forward to being part of an exciting team for next season."
Hurricanes chief executive James Te Puni said the club was thrilled to re-sign an individual who had been extremely instrumental for the Hurricanes in recent seasons.
"Beaudy is a young man with incredible talent, and it's great to know he's chosen to be with us for the next two years.
"He has a huge following throughout the country, and we know having him in the number 10 jersey for us really strengthens the Hurricanes team on and off the field."
