The Auckland-born centre, famed for his big tackling by supporters, signed a new one-year deal last season, with the option for a second year, and Hill has revealed he now wants to take up the option with Rasmussen playing some of the best rugby of his career.
"I can tell fans that Dale will definitely be with us next year," said Hill. "As far as I'm concerned, I am 100 percent happy with Dale. He has hit top form at the right time and the question was whether Dale felt he would want to carry on.
"He has been a great servant for Worcester and the question was did he have the motivation to carry on? But he loves it here and wants to carry on. He is playing better than ever in my view and he is looking fresh.
"We have made sure that he has had the rest at the right time and we haven't battered him week in and week out.
"We have kept it right for the play-offs and I think anyone that has seen Dale Rasmussen recently, including last weekend at Bristol, would see he is full of running and enthusiasm and in top form. I will be delighted to keep him next year."
Hill has also praised the manner in which Rasmussen has marshalled the defence this season and grown in confidence as the league campaign has gone on.
"Dale is a good player and you don't play in the Premiership unless you are a good player. I have noticed Dale almost grow in confidence as the season has gone on," he added.
"He has made breaks and is battering through people and using his footwork. You also notice that he talks so much in defence and Alex Crockett and Alex Grove love playing with him because he talks and talks all the time. That is crucial and he loves tackling.
"Dale is a very dependable member of the squad, a lovely lad who fits in well and he has tackled the biggest centres the Premiership has to offer and we all know Dale loves to smash people. That will be important if we managed to get promoted this year."