"It is great that John has committed his future to Connacht. He has been a great player and leader over the past few seasons, having come up through the ranks," said Gerry Kelly.
Muldoon, who made his 100th appearance for the club at the start of the season against Ospreys, has played for Ireland at youths, U-19, U-21 and 'A' level.
"I am delighted to extend my contract with Connacht. We have made a lot of progress in recent years and I want to help build on that," said the 26-year old from Portumna.
"At this stage, though, all attention is on Friday's game against Dax where we will hopefully secure a place in the quarter-finals of the European Challenge Cup," he added.