Another product of the Munster Rugby Academy, Holland made his competitive debut in September 2007 against Llanelli Scarlets in Cork and impressive performances across that season later saw him awarded the Academy Player of the Year accolade.
Promoted to a full contract in the summer of 2009, the Cork native has made 120 appearances in the red jersey. Along the way, the second row featured in the Munster side narrowly defeated by New Zealand in 2008 and also played a central role in the province's win over Australia two years later.
One of Munster's most consistent performers through the years, 2012/13 represented a breakthrough season for Billy, featuring in every PRO12 game and making four European appearances, including his first Heineken Cup start against Racing Metro in Paris. He was subsequently named the IRUPA Unsung Hero for that season.
A central figure amongst the current squad, the 30-year-old has captained Munster on a number of occasions and previously led Munster A to British and Irish Cup success in 2012. Part of the Emerging Ireland squad that won the 2014 IRB Nations Cup, he subsequently captained the side as they claimed another title in the 2015 Tbilisi Cup final.
Holland finished out last season with 25 Munster appearances and a Player of the Year nomination.
Commenting on the announcement, Head Coach Anthony Foley said, "Following on from Conor and Keith on Wednesday, this is more welcome contract news.
"Billy is one of the most experienced guys in the squad and has always stood up as one of our leaders and decision makers, especially in recent seasons.
"Billy's work ethic and determination is second to none and it will be great to have his astute rugby knowhow on the field in the seasons ahead."