The new deal will keep the 52-year-old in his post until at least 2019.
Mourinho, who had previously been in charge from 2004-2007, rejoined in 2013 and led them to the Premier League title and the Capital One Cup last season..
Jose Mourinho predicts 'stronger' league
"I said when I returned here that I have a special feeling for this club and nothing changed," he said.
"I think this is a normal thing for me to sign a new contract. It is important we have this continuity and I hope we can enjoy more success in the future - for the fans, the players and the club.
"It is the club closest to my heart and I am very happy to know I will be staying here for a long time."
source:BBCsports.com
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