** Shares of IT firm Knosys KNO.AX rise as much as 4.7% to A$0.045, highest level since Oct. 31

** Co says telecom co Optus signs additional 1-year contract extension, with the option for a further 1 year for continued use of co's knowledge management platform, KnowledgeIQ

** Value of contract extension (including one year option) has potential to exceed A$2.4 mln ($1.54 mln), co says

** Stock set for seventh straight session of gains

** KNO up 38.5% YTD as of 1246 GMT

($1 = 1.5615 Australian dollars)

(Reporting by Adwitiya Srivastava in Bengaluru)

((Adwitiya.Srivastava@thomsonreuters.com;))