Simeone has been in charge of the Rojiblancos since 2011 and has delivered eight trophies in total for the club, including last season’s La Liga title.
The 51-year-old Argentine has also won two Europa League titles with Atletico but has been on the losing side twice in two UEFA Champions League finals.
An Atletico statement said: 'Diego Pablo Simeone has signed a contract extension until June 30, 2024.
'Since the Argentine joined in 2011, we have enjoyed one of the most successful phases of our club's history – winning eight trophies in the process.
'During this period, Simeone has become the coach who has won the most titles (eight) and games (316) in our club’s history.
'The members of his coaching staff have also signed contract extensions until 2024.
'Oscar Ortega, Pablo Vercellone, Nelson Vivas and Hernan Bonvinvini have also played a big role in our recent success.'
'Apart from the eight trophies we've won, we've also qualified for nine consecutive seasons for the Champions League, something unprecedented at our club,' the statement added.
'With this contract extension, we continue our exciting project with Diego Pablo Simeone. Fantastic news for the Atleti family.'
Atletico Madrid will start the defence of their league title away at Celta Vigo on August 15.
