The experienced flanker has committed to one more year with the province.
After another seasoned campaigner in Conor Murray signed a new one-year extension in recent weeks, Peter O’Mahony has now followed suit.
The Ireland captain has made 291 professional appearances to date, including 182 for Munster.
The Cork man was named the southern province’s captain in 2013 and hasn’t let go of the role since.
He is Munster’s longest serving captain in the professional era of rugby.
So far this season, he has made five appearances for Munster along with 11 for Ireland.
Along with O’Mahony and Murray, Jack Daly also signed a new contract and Brian Gleeson will be promoted to the senior squad next season.
Munster will be hoping to finish their United Rugby Championship season in good fettle after getting knocked out of the Champions Cup.