"Tom has brought a wealth of knowledge and a tremendous work ethic to the organization since joing the Rangers in 2000," said Glen Sather, the team's president and general manager.
"His tactical knowledge of the game and his ability to work and teach young players are a perfect fit for our hockey club as we continue to move forward in our rebuilding
Renney, 49, had become interim coach when Sather left the job in February to concentate on his front-office duties.
The Rangers finished the past season with a 27-40-7-8 record. They were 5-11-3-1 under Renney.
Renney has been with the Rangers four years. Previously, he coached the NHL's Vancouver Canucks and was coach of the Canadian national team.