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The 25 year-old flanker is Ulster through and through and admits he had no hesitation in committing his future to his home-town province.
"It means everything. This is home, I was born and raised here, Ulster is the team I've always followed and I have a huge desire to achieve something big with the club. I don't want to leave Ulster without winning something," said Ferris.
"I'm competing against top-quality players every single week for my place in the team. I've got to be training really hard and absolutely on top of my game to ensure I'm selected and that challenge keeps me hungry and makes sure that I am working to be the best player I can be.
"There is a definite sense that this is the start of something special. There's a buzz around the squad and organisation as a whole, not just amongst the players and staff but amongst our supporters."
Ulster have a 100% record so far in this season's Magners League, with victories over reigning champions the Ospreys and league new-boys Aironi already recorded.
The Northern Irishmen will also come face to face with the Italians in this season's Heineken Cup in a tough pool which also features Bath and Biarritz Olympique Pays Basque.
The news is the latest boost for an Ulster side who have already made a trio of high-profile signings in Springbok stars Johann Muller, Pedrie Wannenburg and Ruan Pieanar as they look to secure quarter-final qualification for the first time since their title-winning campaign of 1999.
"A huge amount has been written about our recruitment of overseas players over the past few months but the retention of Stephen for a further two years is an enormous boost for Ulster and Irish rugby," said Ulster's operations director David Humphreys.
"Ulster's long-term success will be built upon Ulster-born players and, despite interest from throughout Europe, Stephen's decision to re-sign with the Province is a very clear indication that he believes we are moving in the right direction."
