Dortmund coach Klopp extends deal to 2016
"We are delighted to have extended the contracts of both," said Dortmund CEO Hans-Joachim Watzke in a statement. "Both have put in outstanding work in the past few years."
Klopp joined Dortmund in 2008 from Mainz 05 and led the team to their seventh Bundesliga title in 2011 with what was the youngest league-winning team since the top division was established in 1963.
Dortmund are level on points with leaders Bayern Munich in the current campaign and are unbeaten in their last 13 league games.
"I am lucky to be working for an amazing football club," said Klopp, whose touchline enthusiasm and celebrations fit well with Dortmund's football-crazy supporters who average 80,000 at home games - the second-highest crowd average in Europe behind Barcelona.
"We know to appreciate the fact that Dortmund is showing us this long-term trust," said the 44-year-old former striker.
A string of Dortmund players, who got first-team action as teenagers under Klopp, have graduated to the German national team in the past two seasons.
Among them are defenders Mats Hummesl and Marcel Schmelzer and midfielders Sven Bender, Mario Gotze and Kevin Grosskreutz.