Mauricio joined us from Southampton in May 2014 and guided us to a fifth place finish in the Premier League and a League Cup Final in his first season in charge.
Famed for his high pressing attacking style of play, the former Argentina defender has built a reputation for developing young players during his previous managerial reigns at Espanyol and Southampton.
He has continued in that vein at the Lane, assembling a squad with the youngest average age in the Premier League and which currently sits second in the league table with just one game remaining having already secured a top-three place.
Daniel Levy, Chairman, said: "We have seen Mauricio bring a tremendous spirit and ethos to our Club and embrace the attacking style of play with which we have always been associated. He has built a squad of youth and experience and this season we have seen football played at the highest level - quite sublime at times. Everyone at the Club is delighted he has agreed an extended contract and we all look forward to working with him in the coming seasons. I know he is as ambitious for our Club as we all are."
Mauricio said: "I could not be happier to sign this new contract. It was an easy decision for my coaching staff and I because we can feel the appreciation of everyone here - there is no better place to be right now.
"The supporters are unbelievable, we have assembled a great group of players with huge potential that can get even better, while the facilities we have to work in are world-class. We also have an incredible new stadium to look forward to and now we are determined to build a side worthy of playing in such an exciting new venue.
"We have enjoyed a great season and we believe this is just the beginning. We have a long-term project and huge belief that we can achieve something big here for the future.
"This club has all the ingredients to continue to challenge at the very top in both the Premier League and in Europe and we want to be here to be a part of what I believe will be a special period in the Club's history.”