Stotts' current deal runs through the 2016-17 season, but he'll stick around three extra years through the 2019-20 campaign. The average salary of the deal is $5 million.
The coach has been in Portland for four years, compiling a record of 182-146 in the regular season. The Blazers have reached the playoffs each of the past three seasons, including this year with a 44-38 record.
They beat the Clippers in the first round 4-2, before falling to the Warriors in the second round 4-1, which many call the closest 4-1 series in NBA history. Stotts finished second behind Steve Kerr in the Coach of the Year voting.
This is the second extension Stotts has received since joining the team in 2012, also signing one in May of 2014. His best season was in 2013-14, leading Portland to an impressive 54-28 record. With young stars like Damian Lillard and C.J. McCollum leading the way on the court, the Trail Blazers' organization has a big upside heading into next season.