There were no other changes to his contract, including his $900,000 annual compensation package.
The Compensation Committee of the Board of Trustees approved the contract extension during a brief teleconference Tuesday.
"I am very appreciative of Coach Shula and his staff for the job they have done over the past two years," Moore said. "We are emerging from a very difficult period in our history and the stability provided by Coach Shula and his staff has played a large part in that recovery. I feel Coach Shula has this program headed in the right direction and I am confident that he can lead Alabama back to a position of national prominence and prestige."
Shula, 40, was hired at the Capstone on May 8, 2003. He begins his third season at Alabama this fall.
"I am humbled by The University of Alabama's generous offer to extend my contract," Shula said. "This extension reinforces the University's resolve to restore our football program to national prominence. That remains my top priority."