The 27-year old will remain with the Black and Whites until 2020, with his previous dealing expiring at the end of the 2017 season.
The deal will take him past ten years at the club and the opportunity to apply for a testimonial next year.
Houghton, who was recently named First Utility Super League Player of the Month for August, was crucial in helping the Airlie Birds clinch their fourth Challenge Cup two weeks ago, with his try-saving tackle on Ben Currie winning the game for FC.
Houghton said: “I’m delighted to secure my future here. It’s a special club that’s on the up and I want to be a part of that.
“I’ve tasted success winning the Challenge Cup and I want to do that over and over again. We’ve got some great young kids coming through at the moment and there’s some really promising times ahead.
“It’s great that I’ve pledged my future to a great club and hopefully we can continue the great form we’ve shown all year going into the end of the season.”
Hull FC head coach Radford admits the Hull born and bred star is invaluable to the club.
“I’m really pleased that Danny has extended his contract to stay with the club. He’s an important part of what we’re about.
“I’m looking forward to seeing him use his influence in the development of Jez Litten, who’s currently coming through the ranks in our reserve team.
“I’m sure if Jez can make some real strides with Danny’s help, it will no doubt prolong Danny’s longevity in his career.
“His durability is obviously a real bonus to our side on the field and how he plays in the game earns respect from his peers.
“I think the next progression in Danny’s career is fine tuning his leadership skills and influence off the field as I have no doubt he has all the minerals to be a future captain of this great club.
“It’s great Danny has committed his future to Hull FC, and having tasted success hopefully it’s well and truly whetted his appetite for more.”