The American League club on Wednesday announced it has signed Girardi to a four-year contract extension through the 2017 season.
Girardi, 48, has guided the Yankees to a major league-best 564-408 record and .580 winning percentage since 2008.
He has led the team to the post-season in four of his six seasons on the job, capturing the 27th World Series title in franchise history in 2009.
Under Girardi, New York has topped the majors in home runs (1,236) while ranking second in runs scored (4,884) and seventh in hits (8,836) and batting average (.265).
In recent weeks, there had been rumblings that the former major league catcher might be on the move, perhaps to the Chicago Cubs.
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