The Blue put pen to paper on what was a busy day one of the AFLW Trade Period, which will run through until March 20.
Hill played ten games in season seven after an ACL injury derailed her early AFLW career, averaging 23 disposals per match, Hill went on to claim Carlton's best and fairest award at the conclusion of the season.
The 20-year-old, who is heading into her fourth season in the competition, was already contracted to the Blues for season eight.
Carlton Head of Football Brad Lloyd was happy to see Hill re-sign, saying that her "enormous faith" in the club was telling of her character.
“To have Mimi show such enormous faith in the Club by adding an additional year to her contract tells you everything you need to know about her character and commitment to this football club,” Lloyd said.
“For someone so early in their career, to be prepared to take ownership and thrive on the responsibility in helping to take this program into its next era is seriously impressive.
“Every Carlton person should feel genuinely excited to have a player of the calibre of Mimi so invested in driving this football club to the position we are all striving to see it reach.
“We will continue work through the remainder of the AFLW Sign and Trade Period with a clear focus in mind, to ensure we establish a playing group that is unwavering and united in their commitment to take this program forward.”