The new contract will see Farina at the helm of the Roar until the end of the 2010/2011 season which is a major coup for the club, especially after he took the club to their first finals appearance last season.
Chief executive Lawrence Oudendyk was delighted with Farina's decision to extend saying, "Frank is a top coach.
"It's a matter of consistency for the club that we know our youth policy going forward is protected and that more young players will be joining the club as a result of Frank's long-term commitment to the club."
Farina was instrumental in blooding some fresh young talent last season, mainly the likes of Michael Zullo, Robbie Kruse and Tahj Minniecon, and thought it paramount to proceed with the development of these future stars.
"We've got some wonderful players.
"To get a further two years to work with the squad that we've got and the young players coming through, I couldn't be more pleased.
"Once they know (the future of the coach), it's easier to convince them that they're in the right place.
"If they see stability at the top in terms of leadership and decision-making, that comforts them."