Potgieter joined the Bulls earlier in the season from France following stints with Bayonne and Dax and immediately proved to be a valuable asset to the squad.
He has started in 10 of 12 matches since his arrival and scored 142 points at an average of 11.8 points per match.
This included a try, 13 conversions, 34 penalties and three dropped goals.
Potgieter, who was schooled in Pretoria, made his Super Rugby debut for the Bulls in 2007, before moving to the Cheetahs in search of more game time.
He returned to Pretoria in 2010, before accepting a contract to join the Sharks a year later, from where he moved to France.
“I think I am finally home,” Potgieter said of his extended time at Loftus Versfeld.
“We have some unfinished business at the Bulls and I would like nothing more than winning a trophy with them again,” the flyhalf said.
Potgieter was a squad member when Bulls coach Frans Ludeke last won the Super Rugby title and the coach was pleased to have him around for another two years.
“Jacques-Louis has proved his value in less than a season and reminded everyone of his abilities.
“His experience came through for us already and we are very pleased about him staying on.”