Defence Minister Anita Anand announced the extension Monday afternoon, before the mandate for the mission known as Operation Impact was set to expire on Friday.
The mission has evolved numerous times over the years, previously including fighter jets, transport and surveillance aircraft, helicopters and military trainers and special forces troops.
But it has also shrunk in size and prominence as concerns about ISIL have receded while other crises and threats such as Russia, China and the COVID-19 pandemic have emerged.
Defence officials say the number of Canadian troops is being scaled back further, with the military planning to have around 150 troops in the region, which is half the current number.
The Liberals were also criticized for withdrawing Canadian fighter jets after taking power in 2015, while Canada’s partnership with Iraq’s Kurdish minority put this country into an awkward position when faced with Kurdish calls for independence from Iraq.
One Canadian soldier was killed while serving on Operation Impact. Sgt. Andrew Doiron died after Kurdish forces mistakenly shot the Canadian special forces member. Three other Canadians were injured in the “friendly fire” incident.