O'Gara's career has seen him become Ireland's record points scorer and most-capped out-half, and he recently became only the third player in Irish rugby history to reach 100 caps.
During his career, he has won four Triple Crowns, one RBS Six Nations Championship title and a Grand Slam in 2009 as well as two Heineken Cups, two Magners League titles and a Celtic Cup with Munster.
This has been augmented by his selection for three British & Irish Lions tours and his current standing as the fifth top scorer in world rugby history (980 points).
He also boasts the Heineken Cup points-scoring record (1165 points) and was honoured as the inaugural winner of the ERC European Player award, earlier this year.
Commenting on today's announcement, O'Gara said: "I am extremely happy with my new contract and to be continuing my career in Ireland.
"I believe there is much more that I want and can achieve with both Ireland and Munster and I'm looking forward to concentrating on doing that over this season and the next two years."
Ireland head coach Declan Kidney said: "I am delighted that Ronan has accepted a new two-year contract and believe that his contribution to Irish and Munster rugby will be as great as ever."
Munster Rugby Chief Executive Garrett Fitzgerald added: "The news that Ronan has extended his contract is extremely pleasing and comes at a very opportune time as we renew our Magners League campaign with the Heineken Cup to follow.
"Having a player of Ronan's calibre and experience commit to Munster sends out a positive message and augers well for the future of Munster Rugby."