Hugo joined on loan from Newells Old Boys in the summer and has made 18 appearances for Barnsley in the Championship and impressed amongst fans.
Reds boss Simon Davey said:
"I am very pleased to get another player signed for the next couple of seasons. Hugo has been an extremely important player for us and has been a continually consistent performer and helped to make the midfield a more solid unit"
"I am very happy to have signed a new contract today. I enjoy playing for
Simon and Hugo were talking exclusively to www.barnsleyfc.co.uk.