Dykes led Louisiana Tech to a Western Athletic Conference Championship in his second season as the Bulldogs won seven consecutive games to end the regular season.
"I am excited about the future of our program," Dykes said Wednesday. "I look forward to greater success for our football team. I want to thank Dr. Reneau and Bruce Van De Velde for their commitment to build this program the right way."
Louisiana Tech faces No. 15 TCU in Wednesday night's San Diego County Credit Union Poinsettia Bowl at Snapdragon (Qualcomm) Stadium.
"Sonny Dykes has done an outstanding job in building a foundation for recruiting and retaining student-athletes of the highest character and caliber," Louisiana Tech President Dr. Dan Reneau said. "We are delighted that he will remain part of the Louisiana Tech Family and to continue building upon the foundation of success that he has created."
The extension is pending approval from the University of Louisiana Board of Supervisors.