Now with 18 Tests on his belt, Jacobson, a blindside flanker/No8, was a consistent starter with the Chiefs this year.
Coach Clayton McMillan said, "Luke is an outstanding player; he's a workhorse, a consistent performer and considered a real warrior within our group.
"Luke leads by example both on and off the field. He isn't one to waste words and prefers to let his actions speak.
"In the absence of some senior players who have moved on, I have no doubt Luke will play an integral part providing the leadership and guidance our younger players will be looking for."
Jacobson also extended his Waikato contract.
Jacobson said he was 'stoked' to extend his career.
"I love representing these teams and am proud to be able to call myself a Waikato/Chiefs man and also an All Black. I'm hungry to succeed with these teams and tick off a few unticked boxes."
The Highlanders have named their latest intake of players for their High-Performance Pathway, following in the footsteps of graduates Fabian Holland, Cameron Millar and Sean Withy.
The players are Sacred Heart College (Auckland) lock Josh Tengblad, Kings High School (Dunedin) lock/loose forward Quinten Holland and halfback Dylan Pledger, Palmerston North Boys' High School mid-fielder Tayne Harvey and Napier Boys' High School outside back Josh Augustine.
Tengblad, Holland, Pledger and Harvey were all members of the 2023 New Zealand Schools team, while Augustine was a member of the New Zealand Barbarians Under-18 team this year.