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Ulster are one of only seven clubs to have won both their opening round matches and face potential make-or-break matches against Northampton Saints in Rounds 3 and 4 next month.
"We did well last year in the Heineken Cup and are hoping to go one better this season," he said. "It's something I really want to be part of and I never really thought about leaving.
"There would have been a lot of unfinished business if I had left so that never even entered my mind. I'm thoroughly looking forward to helping Ulster be successful over the next few years."
A former Gloucester Academy graduate, Tuohy joined the Province ahead of the 2009/10 season from Exeter Chiefs and has amassed 74 caps in just over three seasons.
With Ireland U21 honours to his name before his arrival in Belfast, his form for Ulster resulted in further international recognition when he won two senior caps in June 2010, scoring a try against New Zealand on his debut.
He now has five caps for Ireland, with his first start also coming against New Zealand in the outgoing summer tour in June this year.
