He has enjoyed a so far steady success with Rovers after taking the club back into the Premiership in his first full season in charge. He is also credited with steering his side to a respectable tenth place in the Prem last season. His effort and determination also saw Rovers take the Worthington Cup - a first cup triumph for the club in 74 years.
Now Souness is contracted to stay at the club until June 2006 and he is determined to build on that success.
"Coming to Rovers has proved an excellent move for me and I have enjoyed every minute," he said.
"This is a first-class club with a really bright future and the place I want to be. I had no hesitation in agreeing to sign a new contract."