Bielsa took charge of Leeds in the summer of 2018 and fell just short of gaining promotion to the Premier League at the first time of asking, losing to Derby County in the championship play-off semi-finals.
The Argentine gaffer took the Yorkshire club one step better in the 2019/2020 season as he masterminded their return to the Premier League for the first time in 16 years.
Leeds topped the Championship table, finishing ten points clear of nearest challengers West Bromwich Albion.
Bielsa signed a two-year contract with the option for a third two years ago. Leeds United have been impressed with the former Argentina, Chile, Athletic Bilbao and Olympique Marseille manager’s output and both parties have agreed to extend their working relationship for another year.
Announcing Bielsa’s new contract on Friday, the newly-promoted side touted the 65-year-old’s achievements at Elland Road.
A statement from Leeds read: "Leeds United are pleased to confirm Marcelo Bielsa has signed a new one-year deal with the club to remain as head coach for the 2020/21 season.
"Under his tenure, starting with a fine 3-1 victory over Stoke City at Elland Road in August 2018, the former Argentina and Chile head coach has taken charge of a total of 100 games for the Whites, winning 56, drawing 17 and losing 27 over two seasons.
"Bielsa last season guided Leeds to the Championship title, winning the league by 10 points and creating history in the club’s centenary campaign.
"The feat earned Leeds United a return to the Premier League for the first time in 16 years, which will get under way on Saturday, with an away trip to Anfield to take on champions Liverpool at 5:30pm."