The agreement, which has the potential to be the biggest kit deal in Irish provincial rugby, underlines Ulster's ambition to become a leading force in world rugby.
"Here at Ulster Rugby, we are absolutely delighted to be continuing our relationship with Kukri," explained Ulster Rugby CEO Shane Logan.
"The fact that even in the current climate we have been able to negotiate our largest ever sponsorship deal shows that Ulster Rugby really has something to offer.
"We're absolutely confident about our product with regular attendances of between 8,000 and 12,000 at Ravenhill, our Magners League and Heineken Cup matches broadcast around the world, marquee names within our squad and a rich vein of young talent coming through the ranks.
"We're ambitious and Kukri have bought into our vision to make Ulster a team capable of competing at the very highest level - it's a journey we look forward to making with them."
He added: "Kukri are an organisation with offices all over the world, but the fact that they have a base here in Northern Ireland and are working directly with us to create unique products is a major plus for both us and our supporters.
"Our players have been allowed unprecedented input into the design and construction of their garments to ensure they have something they feel entirely comfortable in and confident wearing.
"We're all looking forward to continuing our partnership and working hard to maximise the benefits of for both Ulster Rugby and Kukri."
Terry Jackson, general manager of Kukri Ireland, commented: "Kukri are delighted to announce our new partnership with Ulster Rugby. There is a massive buzz to Ulster Rugby at present, exciting stars at the top end such as Ruan Pienaar, Stephen Ferris and Johann Muller, as well as some real exciting emerging talent in Craig Gilroy and Jamie Smith to name a few.
"In addition, there are plans for a fantastic stadium redevelopment and a very progressive feel to the whole province, so Kukri are proud as punch with this partnership.
"The Ulster Rugby partnership is a fundamental platform to the Kukri Ireland business and it compliments well our 18 partnerships with local rugby clubs.
"We will be launching an exciting and edgy new range of performance product next season, which has been developed hand in hand with the Ulster Rugby squad, and this will be available via our many local retail partners next July."