Former Italy coach Kirwan joined the Blues last year but the wave of optimism over the appointment of the All Blacks great quickly subsided as the three-time champions finish 10th in the southern hemisphere competition and missed the playoffs.
"I've loved every day of this job - it's a team and region that I'm incredibly passionate about so I'm really happy to get another season to keep building on the work we've been doing," Kirwan said in a statement issued by the team on Thursday.
Assistant coach Grant Doorey has also been re-appointed until 2015.
The
Blues lost their season-opener away to the Highlanders last week and
have a tough assignment against the seven-time championship-winning
Crusaders at home on Friday.
Kick-off is at 08:35 SA time.