Financial terms were not disclosed by the team for Matheny, who guided St. Louis to the World Series against the Boston Red Sox during his second season after taking over for longtime skipper Tony LaRussa. The 46-year-old Matheny won three consecutive National League Central titles (2013-15) during his five seasons as manager.
Matheny has guided St. Louis to a 461-349 record with his 92 average wins per campaign serving as the most victories among all major league managers during that stretch. A former catcher, Matheny took the job in 2012 without any previous major league managing experience.
"Mike has continued the Cardinals tradition of winning in his first five years as manager and we are happy to extend his contract leading our club on the field through 2020," Cardinals owner and CEO Bill DeWitt, Jr.
This season, Matheny watched as St. Louis squandered a stunning power display and missed the National League playoffs for the first time since 2010.
Also on Thursday, the Cardinals promoted Palm Beach manager Oliver Marmol to the major league first base coaching position, while Triple-A Memphis manager Mike Shildt was promoted to the Cardinals' quality control coach.