The new deal will presumably squash speculation that Franklin could be a candidate to fill the coaching vacancy at Florida State or another program.
"It's not often a coach gets an opportunity to move back to their home state and coach the team they grew up watching," said Franklin, who was born in Langhorne. "It's even more rare that it's a school as rich in history and tradition as Penn State. It's been an honor and privilege to be the head coach of the Penn State football program for the last six years.
"It's gratifying to work at a university where the administration cares as much about what happens in the classroom and community as it does about wins and losses. I love Penn State, our players, and our dedicated coaches and staff."
Franklin guided the Nittany Lions to a 10-2 record in 2019, making it the third time in the last four seasons that he's reached double digits in wins. Overall, he owns a 55-23 record since leaving Vanderbilt in 2014 to take the reins at Penn State.
The Nittany Lions finished the regular season ranked 10th in the College Football Playoff rankings and 12th in the AP Poll.