Cleveland announced the pact Wednesday, extending Francona through the 2022 season. Francona, 59, joined the Indians in 2013 after eight seasons and two World Series titles with the Boston Red Sox. He owns a 547-427 mark in seven seasons with the Indians.
The Tribe has had four seasons with at least 90 wins during Francona's tenure, including a 91-71 campaign in 2018.
"Simply put, 'Tito' has been a transformational leader, who has not only impacted our Major League clubhouse, but also the entire organization," Indians president of baseball operations Chris Antonetti said in a news release.
"Our relationship has been truly collaborative, and we are all fortunate to have a future Hall of Fame manager guiding our team as we continue to pursue our ultimate goal of bringing a World Series to the city of Cleveland."
Francona's 1,576 wins are the second-most among all active managers. The Indians have the best winning percentage in the American League during Francona's tenure.
"Tito" owns a 1,576-1,342 record in 19 seasons as manager, that includes the Indians' 2-2 start to the 2019 campaign. Francona began his managerial career in 1997 with the Philadelphia Phillies, where he stayed until the end of the 2000 season. Francona became the manager of the Red Sox in 2004, winning his first World Series in his first season. He won his second title with Boston in 2007.
"Ownership has a big say when you sign contracts like this," Francona told reporters. "Obviously I'm appreciative of that. I love working here. We are going to get challenged. I'm not afraid of that. We are going to try and figure things out together. Hopefully we do a good job of it. Sometimes we struggle, but we are going to do it together. I enjoy doing that with people I really care about."
The Indians host the Chicago White Sox at 1:10 p.m. Wednesday at Progressive Field in Cleveland.