The 47-year-old joined Hawthorn in 2013 and was a key part of the coaching panel as the club won three premierships in succession between 2013-2015.
He also coached Carlton in 120 games between 2007-2012 before being sacked at the end of the 2012 season when the Blues decided to employ Mick Malthouse as coach.
Ratten has been popular at Hawthorn,with the club rallying behind him when his son Cooper was killed in a car accident in 2015.
He coached the midfield group and will continue in his role with the Hawks until the end of the year.
Hawks football manager Graham Wright heaped praise on Ratten for his contribution.
"His infallible work ethic and values as a coach and person has made Brett a much loved figure at our club amongst players,staff and supporters,"Wright said.
"Hawthorn is incredibly grateful for what Brett and his family have given to the club over six years and he remains fully committed to Hawthorn for the remainder of our 2018 campaign."