Dixon has guided the Panthers to a 132-40 record in 10 seasons on the job.
His record includes five consecutive NCAA Tournament appearances, five straight 20-win seasons, and five straight 10-win seasons in the Big East Conference.
The 132 career victories put him third all-time among NCAA Division I coaching starts after five seasons.
"I am grateful to the University of Pittsburgh for the opportunity and support that I have received here," he said on the school's Web site. "I'm fortunate to be surrounded by a special group of players, a great coaching staff, the most supportive administration in the country and tremendous fans. Our success can be attributed directly to those components."
"This contract extension is all about commitment: our commitment to Jamie and his commitment to the University of Pittsburgh," said athletic director Steve Pederson.
Notable deaths of 2014 [PHOTOS]