Keenan joined the National Lacrosse League team before the 2010 season. He has led the Rush to three playoff appearances in four years, including an appearance in the 2012 NLL final.
The Rush had not advanced to the playoffs before Keenan's arrival, missing out in all four seasons since the team was founded in 2005.
"We have full confidence in the direction Derek Keenan is taking this team, this past season was another strong campaign that provided a good look into the exciting potential of the club," Rush owner Bruce Urban said in a statement.
"Keenan is the finest coach in pro lacrosse at pre game preparation for his players. If this team executes the game plan night in and night out, get ready for some winning seasons."
The Rush finished 9-7 this season and were eliminated in the first round of the playoffs. There were positives, however, as the team scored a franchise-record 203 goals.
“There may have been other opportunities out there for me but there is really no other place I want to be," Keenan said. "I did not even bother to test other waters. We have a very committed owner in Bruce Urban and a hard working front office staff.
"Most importantly I think we have a really talented young team, a group of athletes whom I really believe in."