The defender impressed during the latter stages of a successful season for his club and scored the goal which earned them a second-place finish in the SPFL Premiership.
A product of the Celtic youth set up, Reid played for Stirling Albion, Queen of the South and Morton before alighting at Fir Park. Having become established at right-back, he is confident that he has made the right decision to agree a new contract.
"I am delighted to get everything sorted," said Reid. "I've loved it since I arrived at the club and I am looking forward to the next two years. It was incredible just how things went for me last season, particularly the way the season finished. With a good, settled pre-season behind me, I just can't wait to get going again."