Hibbard joined the Rodney Parade region from Gloucester in 2018 and he has since gone on to make a total of 56 appearances for the Welsh side.
The physical front row forward has made 18 appearances this season and he scored a memorable hat-trick in the Guinness PRO14 fixture with Connacht in February.
Director of Dragons Rugby Dean Ryan said: “We’re delighted Richard has signed and remains a Dragon.
“In the last couple of months he’s played some of his very best rugby.
“Every time we have gone to him, his level of performance and minutes played have been outstanding.
“He’s determined to continue making an impression in our environment and the experience he brings is vital in developing others around him.”
Hibbard revealed how much he is still enjoying his rugby is one of the main reasons why he has signed on for a new Dragons deal.
He added: “I’m really enjoying playing with and for this group and excited by what the future holds for us.
“Dragons have a fantastic core in place now fom Dean and the coaching team to the back-room staff and the special young talent being produced by the region.
“To be part of this journey, to become the team we should be, is amazing.
“I’m determined to continue to play my part in whatever way I can for the Dragons.”