Hull City and Fulham were both interested in taking the versatile midfielder away from Ewood Park in the summer, but the Republic of Ireland international has penned a contract until 2013.
"I'm delighted to be here and commit myself for another four years," he revealed.
"The Chairman was very fair with me, when I signed from MK Dons he said that if I performed and got in the team and stayed in the team I would be rewarded and he has been true to his word, so I'm over the moon to be signing."