Payton has been with the Saints for 10 seasons, and was already one of the highest-paid coaches at $8.5 million per year. The team is also in talks with quarterback Drew Brees on a possible four-year extension, which would keep him with Payton through 2020.
The coach revealed the news himself at a press conference Tuesday morning during the NFL's owners meeting. He had the unsigned contract with him, in his briefcase. The only way the Saints could let him go to another team was if they agreed to work out a compensation package.
Payton said this extension became a "formality" a week after the season ended. He has repeatedly expressed his comfort with the organization, stating "that stability, obviously, I don't take for granted."
Only Bill Belichick, Marvin Lewis, and Mike McCarthy rank higher among active coaches' tenures with their current teams. This tenure does not look to be ending anytime soon, as the Saints look to regroup next season following a tough 2015 campaign.