The deal will see the 21 year-old fast-medium bowlerwill remain at The BrightonandHoveJobs.com County Ground until at least the end of the 2016 campaign.
Eastbourne-born Hobden signed a junior professional contract with Sussex last June and has graduated through the academy setup at Hove.
He gained first-class experience with Cardiff MCCU at the beginning of last season before going on to make his List A bow for Sussex in the Yorkshire Bank 40 victory over eventual winners Nottinghamshire at Trent Bridge.
Hobden said: “It’s really nice to have the security of a new contract until the end of 2016. “It’s great that Sussex are backing me for that length of time, especially having come back from injury and I can now pace myself in terms of getting back to full fitness.
“I can solely concentrate on cricket now as I am about to finish university, so I’ll be looking to prove myself in the second team and hopefully knock on the door of the first eleven very soon.”
Sussex’s professional cricket manager Mark Robinson said: “Matt is an exciting young player, who if he keeps his feet on the ground, should have a good career.
“He is working hard to get back up to fitness and should be soon starting to compete for a place in all forms of the game. We look forward to watching him develop over the next couple of years.”