"When we structure our roster, we are able to do so with the utmost confidence because we are putting these players in the hands of Bobby Cox, who I believe is the best manager in baseball," Schuerholz said.
Cox said the GM told him Sunday he was going to exercise the team's option to extend the contract.
"What else am I going to do?" Cox said. "It's either do this or go manage in Pawtuckett."
The 62-year-old Cox has managed the Braves since 1990, guiding them to 12 straight division titles. His teams have claimed five National League penants and won the World Series in 1995.
Cox also managed the Braves from 1978 through 1981.