The 44-year-old signs a deal to continue his tenure in charge of the national team until 2016, despite finishing second-from-bottom in their World Cup qualifying group
The 44-year-old took the job in December 2011 and has guided the country to one win in 14 matches during his tenure.
O'Neill picked up his only victory to date when Northern Ireland beat Russia during their World Cup qualifying campaign in August but they finished second bottom of their pool with just seven points from 10 games.
However, the Northern Irish FA believes that he is the right man for the job and have extended his deal to include the Euro 2016 qualifying campaign.
O'Neill is thrilled to have been given the opportunity to improve on their showing in the World Cup qualifiers, telling the press: "When I was appointed Northern Ireland manager I was honoured to have been chosen to manage my country and I am extremely happy to have agreed a new two-year dea.
"I have said all along that I would like to continue in the role.
"I think there has been a major transition in the team; it's a very young squad but a squad which has developed during the last campaign, with several young players of quality emerging, and I am now looking forward to taking the team into the European Championship qualifiers."