VIDEO: Paul Heckingbottom's delight as Adam Hammill signs new two-year deal at Barnsley
"Adam is the right fit for this football club," Reds caretaker - soon to be permanent boss - Paul Heckingbottom said.
"He's a fans' favourite and was the catalyst for helming us turn things around last season."
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Hide AdHammill re-joined the Reds in November last year for his second spell at Oakwell and went on to win the Fans Player of the Season award for some starring performances.
He scored nine goals last season and was being courted by a number of other clubs.
But the chance to continue his career with the Reds, who are now back in the Championship, proved a proposition too good to turn down.