Notre Dame Athletics Director Jack Swarbrick said Kelly has been rewarded following two consecutive 8-5 seasons and a 1-1 record in bowl games.
The new deal will keep the Fighting Irish mentor behind the bench through the 2016 season.
"While Coach Kelly and I are focused on the additional work that must be done to reach our goals, I am very pleased with the progress we have made during the past two years." Swarbrick said.
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