The 23-year-old toured the British Isles in November and has since penned a contract tying him to the amber and blacks until 2008.
The 6ft 8in forward moved to Taranaki from Manawatu in 2003, breaking into the national squad after impressing in the 2005 NPC season.
He also graduated to the Super 14, earning a contract with the Hurricanes and a subsequent extension to his current Taranaki agreement.
He told the Taranaki Daily News: "The big thing is, I made the Hurricanes and the All Blacks from Taranaki and I didn't see any point in moving anywhere else. I've really enjoyed it with Taranaki.
"The new contract is worth a bit more, so I'm happy about that. I'm happy to be staying. I've been here two years and I really enjoy the Taranaki lifestyle and the beaches."
Coach Kieran Crowley said the deal showed promising players such as Eaton did not have to sign for one of the Super 14 provinces to stake an international claim.
"It just shows that you don't need to go and play for any of the big city teams to launch your career," he observed.
"When Jason came here, he was a second division player and now he has a Super 14 contract with the Hurricanes and has played for the All Blacks.
"Hopefully, other players wanting to do the same thing will realise that you can do that from Taranaki.
"We were keen to keep him past next season. He's definitely learned a lot this year, particularly on the All Blacks tour, and I'm delighted we've been able to re-sign him."
Eaton, who started in the All Blacks' 45-7 win in Ireland before coming off the bench in the 23-19 win over England and the 29-10 victory over Scotland, will resume training with the Hurricanes next month.