Clough was joined by his backroom staff of Gary Crosby, Johnny Metgod, Martin Taylor and Andy Garner, in signing new deals with the npower Championship club. The Rams are off to a strong start this season, sitting fourth in the league after 11 matches.
"We are all delighted that our futures have been sorted out and that we have the opportunity to continue the work of the last two and a half years of trying to improve this club," Clough told the club's website.
"From day one we knew this was going to be a long term project and it is still very much a work in progress. This new deal is not about any individual, it is about a collective effort from a group of people who have worked extremely hard to change the culture and mentality of the football side from top to bottom.
"We have shared values throughout the organisation of working hard every day and making sure everyone gives their best, which is exactly what the fans deserve and demand from anyone lucky enough to represent Derby County.
"We are seeing signs of improvement all the time now, at every level of the club, and we believe there are some good times ahead of us."
Clough took over at Pride Park in January 2009, joining from Burton Albion, but struggled to bring success in the early days, and only managed a 19th-placed finish last season.
There had been speculation in recent weeks that Clough would be moving on, but he insisted that was never a consideration.
"Our commitment to Derby County has never been in question," he added.
"We all love working here and care passionately about bringing success to supporters who have remained so loyal during some difficult times. There is nowhere else we would want to be."