Hinch, who helped take the Astros to the franchise's first World Series victory last season, is in the final year of his contract. The deal has a team option for 2019.
The Astros hired Hinch in September 2014 and he has a 353-266 record in four seasons. He also led the Astros to the 2015 postseason, and the team is poised to likely return again this year.
Houston (82-51) is currently in first place in the AL West standings, sitting 2.5 games ahead of the Oakland A's (80-54).