Fly-half Cooper, who had previously only signed one-year contracts with the ARU in 2010 and 2011, was instrumental in taking the Reds to the Super 15 title last season alongside Will Genia who has also re-signed for the Brisbane-based franchise.
"I'm really enjoying my time here, I'm in a good place at the moment, and I'm enjoying where the Reds are going as an organisation and as a team," the mercurial five-eighth told Fox Sports.
"We've got a bright future ahead and hopefully a few more titles in the next few years."
Cooper underwent knee reconstruction surgery after suffering an ACL injury during the World Cup in New Zealand last October and is currently under investigation by the ARU after allegedly being involved in a bar fight, with good friend Kurtley Beale, in Brisbane on Thursday night.
"We were doing what young blokes do," Cooper said, after admitted that the duo for out celebrating his signing the new contract.
"We were playing a bit of pool and it escalated from there.
"We're both five-eighths so there's not going to be too much brawling."
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