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The 26-year-old player from Australia became an Irish-qualified member of Connacht in 2021 and has made 27 appearances for Ireland since his international debut in February 2022.
In his first season at Test level, the winger was nominated for the World Rugby Breakthrough Player of the Year award and currently has a total of 12 tries for his country.
"Since relocating to Ireland, I've truly enjoyed my experience, and I'm thrilled to have signed this new contract," Hansen stated.
"I want to express my gratitude to the IRFU for believing in me, and I am incredibly eager about what lies ahead."
David Humphreys, the performance director of the IRFU, referred to Hansen as "a key player for both the Ireland and Connacht teams in recent years."
"Securing Mack's commitment for the upcoming season is a significant advantage for Irish rugby. He is a reliable performer who gives his all and rises to the occasion when it matters," Humphreys added.
Hansen played a crucial role in helping Ireland secure the Six Nations Grand Slam in 2023 and is currently part of the squad aiming to repeat that success this season.
Ireland's Six Nations journey will resume on Saturday with a home match against France.
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