Nigeria international Aluko was reportedly a target for Crystal Palace in January, with his previous contract set to expire at the end of the season.
However, the former Rangers man has committed his future to Hull following their strong start to the campaign.
Aluko is currently sidelined with an Achilles injury and has made just eight appearances this season, scoring once in September’s 3-2 win at Newcastle United.
The forward insisted his intention was always to remain with Steve Bruce's side, and dismissed any claims that he was ready to move on.
"I'm happy to extend my stay here," Aluko told Hull's official website.
"I've said right from the beginning, when talk about a new deal first came about, that I was happy here.
"I also said that it might take time for the deal to happen and that is how it turned out.
"Because it took a while, people started making a story out of it and were saying that I was going to this place or that place. That was always irrelevant.
"I have to thank the manager and the owners of the club.
"I would also like to thank my team-mates for helping to make my time here a success. If it wasn't for them, there probably wouldn't be a new deal."
Aluko is closing in on a return to first-team action after almost three months out and is reportedly eyeing a comeback at the end of the month.
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