The 21-year-old, who joined Boro from Livingston in August 2010, has displayed useful versatility this season after being converted from a midfielder into a left-back.
Such qualities have made him an important part of Tony Mowbray's plans and Sky Sports revealed in December that talks were to be opened with the youngster regarding a new deal.
With his previous agreement set to expire in the summer, Boro have been able to bring those discussions to a positive conclusion.
"Andy Halliday has signed a contract extension that will keep him at the club for another couple of years," read a statement released on the club's official website.
"After discussions with Tony Mowbray, he has signed an extension until the end of June 2015."