Despite attracting interest from overseas clubs, the 25-year-old has opted to continue career in New Zealand, where he will be looking to add to his 10 international appearances.
"It was a decision that I feel really happy with and it also gives me and my family security to know where we will be to at least the end of 2021," he said.
Currently preparing for the upcoming Super Rugby season, Hurricanes coach John Plumtree said he was delighted to secure Laumape's services for a further two years.
Laumape has been with the Hurricanes since 2016, after switching codes from rugby league. Prior to that he spent three seasons playing for the Warriors in the NRL.
"To get Ngani committed to being at the Hurricanes until 2021, so soon after Dane Coles also announced he was staying, it's more great news for us," he said.
"We believe Ngani will continue to get better. We have all seen how destructive and effective he is in the midfield for us and he is a guy who other players want to team up with."
Laumape made his All Blacks debut in 2017 on the back of a breakout Super Rugby season where he scored 15 tries.
"Ngani is part of a crop of outstanding young All Blacks who are taking their opportunities on the international stage, and we congratulate him on his decision," All Blacks coach Steve Hansen said.
"He's a talented footballer and really maturing and growing his game in the midfield position. We look forward to seeing Ngani in the All Blacks and Hurricanes jerseys for some years to come."
Laumape has also re-commited to his home province Manawatū for a further two years.