After K9 Mark I regenerated into K9 Mark 2, his design was radically altered. His ear probes were replaced with larger silver aerials. A set of blue lights on his head flashed when he spoke. Most of his body was dark silver and a silver dog bone was located under his neck. He seemed to have the same capabilities as Mark I but was presumably more advanced. (TV: Regeneration)
When Romana eventually returned to her own universe, she brought K9 Mark II with her (presumably having repaired it) and eventually became Lady President of Gallifrey. K9 Mark II is first seen on Gallifrey in the Virgin New Adventures novel Lungbarrow by Marc Platt, alongside K9 Mark I, which had remained with Leela. Both K9 Mark I and Mark II appear, voiced by Leeson, in the Big Finish Productions audio adventure Zagreus and the Gallifrey audio series. Leela's K9 (Mark I) was destroyed at the conclusion of the second Gallifrey series and only Mark II appears in the third series.
K9 was not originally intended to be a companion, but producer Graham Williams liked the concept so much that the decision was made to retain him as a regular character, in order to appeal to the younger members of the audience. The original name for the character was "FIDO" — apparently from "Phenomenal [sic] Indication Data Observation" unit — but it was eventually named K9.
K9 was a popular enough character to warrant an attempt to spin him off into his own series. In addition to K9 dolls, there were also talking K9 toys produced by Palitoy, the speech provided by a miniature record inside the body of the toy. John Leeson provided the voice for K9 in all its appearances, except for Season 17 (which included the unfinished Shada) when it was voiced by David Brierley. When Shada was remade by Big Finish Productions, Leeson provided its voice.
Introduced into the plot in The Invasion of Time, K9 Mark II first actually appear on-screen in The Ribos Operation (1978). More mobile than his predecessor, Mark II exhibited the ability to sense and warn others of danger. He travels as a companion alongside the Doctor and Romana. Around the time of Romana's regeneration (the transition from actress Mary Tamm to Lalla Ward), the K9 character was explained as suffering from "laryngitis" to accommodate Leeson's departure from the series at the start of the 1979–80 season; for this time, he was portrayed by David Brierley, until Leeson's return for the 1980–81 season. When the Doctor and Romana travel to the parallel universe of E-Space, K9 is severely damaged, in Warriors' Gate (1981). The damage was such that K9 could only function in E-Space; when Romana decided to stay and forge her own path, the Doctor gave K9 to her. The character makes subsequent appearances in remakes of the unfinished serial Shada, alongside the Eighth Doctor (Paul McGann); the 2003 Shada audio play and webcast depict K9 Mark II as having returned to Gallifrey with Romana, now Lady President of the Time Lords, where the Doctor visits them. It is not clear if either of these audio appearances are considered canonical in relation to the continuity of the TV series.