Warne's 12-month ban for failing a drugs test ends on February 10, and he will captain Hampshire during his second season at the county.
He was initially signed on a two-year deal until September 2004 but missed last season because of the ban.
"I'd like Shane to be in Hampshire for the rest of his playing days," Hampshire chairman Rod Bransgrove told the BBC. "It would be very fitting if he was to finish at Hampshire - I'm sure he'd like to play for Hampshire as long as he can.
"We've got an ambition to rebuild the whole fabric and structure of our squad, utilising the skills and abilities of our younger players, and we see Shane as an intrinsic part of that."