The 23-year old Irishman has been at the club since he joined the youth academy in 2004 and will now remain at Turf moor until 2013.
McCann has missed a lot of the last two campaign with the Clarets due to injury and now the deal is finalised, he is looking forward to getting back on the pitch on performing consistently.
"It's been a drawn-out affair but I'm happy it's done and I can concentrate on football," McCann told the club's official website.
"I am happy to be staying here. It's the club I grew up playing for, so I'm delighted.
"There was never any real doubt of what I wanted to do or where I wanted to be.
"It's the right choice to stay and hopefully get regular football here.
"The club has been good to me since I've been here and through the injuries I've had they have stuck by me," he added.