"I'm thrilled to sign a new IRFU contract," said Murray.
"In 2013 I learned a lot as a player with my club, Ireland and the Lions and I hope to continue to develop and push for honours over the coming years."
Murray made his Ireland debut on the eve of the 2011 World Cup, just a year after his first appearance for Munster, having graduated through their academy.
"Conor has illustrated in recent months the value he brings not only to Munster, but also to the national team," said Munster coach Rob Penney.
"At 24 he is still a young guy and he has the potential to go on to become one of the best scrum-halves in the game."