The team announced Thursday that Hill has agreed to a two-year contract. Hill had signed a one-year, $1.542 million restricted free-agent tender in March. He was due to reach unrestricted free agency in 2016.
According to NFL Media Insider Ian Rapoport, the deal is worth a total of $7 million, with $5 million in guarantees, per a source who has seen the deal.
"When I first signed and sat down with Ozzie (Newsome), I knew from that point I didn't want to go anywhere. I wanted to be a Raven," Hill said, according to the team's official website.
Released by the Giants after a third strike against the NFL's drug policy, Hill signed with the Ravens and served out a six-game suspension to open the 2014 season.
Hill entered the starting lineup at midseason and instantly emerged as a superior option to first-round draft bust Matt Elam.
Now that Elam is set to miss the 2015 season with a torn biceps, Hill is locked in as the strong safety opposite free safety Kendrick Lewis.
If Hill stays out of the NFL's doghouse, he has the potential to perform as one of the most well-rounded safeties in the league, capable of hanging with premier tight ends in coverage and stuffing the run.
The multi-year deal is a show of faith from the Ravens, who have been pleased with Hill's progress on and off the field.