Despite last season’s relegation the Blues board kept faith with their manager and have now reinforced that with a contract extension to the end of the 2022-23 season.
Chairman Iain Dougan said: “Stevie is a good fit for our club and we are confident that under his continued leadership we will continue to progress and remain competitive.”
Farrell expressed his gratitude for the club’s support in resisting the temptation to make a change after dropping out League 1 – and is now focussing all his energy on trying to get back there as his side battle to make the play-offs.
He said: "There's only me and the club know the circumstances behind everything at the club.
"People looking in have a simplisric view but when you consider everything myself and the club are happy in terms of what we've done, where we are and what we're trying to build.
"This season was always going to be difficult but we've been up there competing.
"The team's performed really well and I just hope for the team and the fans that we get this over the line and give ourselves an opportunity to compete in the play-offs and get back in."
“I’m grateful to the club for the trust they have shown in me and I’m sure we can continue to be successful both on and off the pitch.”
Stranraer’s immediate task is to bounce back quickly from Tuesday’s 4-1 home defeat by Elgin which ended their run of four league wins without conceding a goal.
"I didn't see it coming,” admitted Farrell. “We'd played so well and been defending so well. But we were spooked by the losing an early goal and we just never recovered.
"We didn't manage the game after that. People talk about managing the game when you're ahead but you can also manage the game through a difficult spell when you concede a goal.
“We kept on trying to believe that we could get back into the game playing the way we normally play.
"But we had to try and do something different and we never got the opportunity to reset.
"That was partly due to Elgin playing as well as they did but we're disappointed with the way we performed.”