Financial terms weren't released but The Topeka Capital-Journal said the deal involved a raise of about $480,000, putting Self's annual salary at about $3.8 million.
"We believe Bill Self is among a very small number of elite basketball coaches in this country," KU Athletics Director Sheahon Zenger said in a release, "and this ensures that we compensate him accordingly.
"We are proud of the way he represents the University of Kansas, Kansas Athletics and the entire state of Kansas and we are thrilled that he will remain our coach for at least another decade."
Self is 269-53 in nine seasons at Kansas.
He led the Jayhawks to the NCAA tournament championship in 2008 and a runner-up finish last season. Kansas has won at least a share of the Big 12 Conference regular season title each of the last eight seasons.
Self previously coached at Oral Roberts, Tulsa and Illinois and has an overall record of 476-158.