Texas Athletics Director DeLoss Dodds announced the extension Tuesday and indicated the 37-year-old Muschamp will some day succeed 57-year-old Longhorns Coach Mack Brown.
"This is a plan that has been enthusiastically agreed to by Mack Brown, President (William) Powers and the Board of Regents," Dodds said. "Things are going well here, it's working, so it's best to be prepared to build from inside and that's what we're doing."
Muschamp, in his first year with Texas, has the Longhorns ranked first in the Big 12 Conference in rushing and scoring defense. He was defensive coordinator for LSU during its national championship run in 2004.
"This is first and foremost about keeping Will at Texas," Brown said. "He's had several opportunities to interview for head coaching jobs, but we wanted him to stay here. I'm going to continue coaching as I'm enjoying it. I have eight years left on my contract."