The move has been rumored since April after UCLA reportedly pursued the 60-year-old for the Bruins' head coaching vacancy.
"I've said from Day 1 that (Kentucky) would be the gold standard and it has been for student-athletes and coaches," Calipari said in a statement. "As I enter my 11th year, I'm reminded it took me 20 years to get an opportunity ... like this. There is no other place I want to be. As I look forward, my mindset is what's next and how can we be first at it for the young people that we coach."
The Hall of Fame coach has the option to step down after the sixth year in his new contract to become a special assistant to the athletics director/university representative. He would receive $950,000 in annual compensation for the position.
Calipari is 305-71 in 10 seasons with the Wildcats and led them to a national championship in 2012. He was named AP College Coach of the Year in 2015 and oversaw future NBA stars Anthony Davis, Karl-Anthony Towns, and DeMarcus Cousins during their lone collegiate seasons.
No other collegiate head coach has more wins, NCAA Tournament wins, Final Four appearances, Elite Eight berths, or Sweet 16s than Calipari since his arrival in Lexington during the 2009-10 season.
Kentucky has made the NCAA Tournament in all but one of Calipari's campaigns. The team was eliminated from this year's tournament following a 77-71 overtime loss to SEC foe Auburn in the Elite Eight.