Cooper, who was named the Australian Super Rugby Player of the Year in 2010 and leads the current competition in points scored, has 64 caps for the Reds and 24 for the Wallabies.
"It's an exciting time to be part of Australian Rugby with the Reds going so well and the World Cup coming up, so I'm glad everything is now squared away," he said.
"The vibe within the Reds team and the support we're getting from our fans is incredible and I'm proud to be part of it going forward."
Several NRL clubs and European rugby teams had reportedly expressed an interest in signing the 23-year-old, who made his debut for Queensland in 2007.
Queensland Rugby chief executive Jim Carmichael said the deal is a boost for the Reds, who sit atop the Super Rugby table after 13 rounds.
"Quade is an integral part of this organisation, both on and off the field, and is exactly the type of young man we are targeting to ensure rugby in Queensland remains strong and vibrant in the future," he said.
Reds coach Ewen McKenzie said Cooper had earned his success.
"Everyone notices the freakish aspects of Quade's game but all those highlight moments start from the hard work he puts in off the field," he said.
"No one works harder than Quade and his rise in world rugby hasn't come by accident.
"Our playing group is building nicely for next year and beyond, and Quade is just one of many excitement announcements we plan on making in due course."
ARU boss John O'Neill said Cooper will be a key figure in Australia's World Cup bid.
"Quade delivers an X Factor, that is undeniable," he said in a statement.
"He has that rare ability to excite an audience and have a defence on alert every time he touches the ball.
"His vision for the game and athletic talent make him a born entertainer and sport is an entertainment business.
"I'm delighted we've extended Quade's tenure in rugby beyond this year's Rugby World Cup because I believe there are some wonderful times ahead for him and this young Wallabies team.
"Quade and his halves partner Will Genia have become superb and consistent contributors to the Reds and the Wallabies and it's hard to imagine a better double act in world rugby."
Tags: sport, rugby-union, rugby-world-cup, super-14, australia, qld, brisbane-4000 First posted May 19, 2011 11:05:00
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