Thompson also carries the titles of executive vice president and director of football operations.
The Green Bay Press Gazette reported the deal carries through 2016.
Thompson has been in charge of the Packers for six seasons, the most recent of which ended with Green Bay's 31-25 victory over Pittsburgh in the Super Bowl.
"We are thrilled to have Ted lead our football operations for the foreseeable future," club President and Chief Executive Officer Mark Murphy said. "He has done an outstanding job of building this team."
Green Bay has compiled a regular-season record of 52-44 since Thompson became general manager and has made the transition from one Super Bowl-winning quarterback (Brett Favre) to another (Aaron Rodgers).
"This is a great organization and I am very humbled and appreciative," Thompson said. "Green Bay is a special place and I am honored to work with such a great group of people that have all contributed to our success."