Hefele, who played a key role during Huddersfield's fight for promotion, has been awarded with a contract extension.
He made 40 Championship appearances for the club, including three starts in the play-offs where he helped Huddersfield secure a place in the Premier League.
"Michael was a big player for us last season. think everyone can see how big of an influence he is in the dressing room and how good of a character he is for the team", Huddersfield manager David Wagner said.
After signing 10 new players, the club has also agreed fresh terms with the majority of the squad.