The former Monaghan United manager has agreed to extend his stay at Hunk Dorys Park until 2015 after a successful campaign in 2012
Cooke took over at Hunky Dorys Park in 2011 and steered the club to a second place finish in the league in 2012, as well as lifting the EA Sports Cup, defeating Shamrock Rovers in the final.
Speaking to the club's official website, Drogheda United chairman Jim Agnew expressed confidence Cooke's ability and praised his work with the club.
"It goes without saying that we are extremely pleased that Mick will remain with Drogheda United for at least two more seasons," said Agnew.
He continued: "Not only was he the manager that brought us from relegation contenders to second in the league and EA Sports Cup champions last season but he is hugely popular generally and a positive person to have around the club.
"Mick has the ability to ignite a spark in the dressing room and the players want to do well for him and for Robbie Horgan, assistant manager.
"We are very fortunate indeed to have such a strong duo leading the first team for the next two years at least"
Meanwhile, Sligo Rovers have secured the services of Danny Ventre, after the midfielder's contract was finalised. The 27-year-old midfielder, who captained the Bit O' Red to league glory in 2012, had formally agreed terms with the club and has finalised his contract after completing a medical.