Will Muschamp received a one-year extension in August, putting the coach under contract with the Gators through 2017.
In 2011, Muschamp originally signed a five-year deal through 2015. In January, Muschamp's contract was extended a year, then in August, a second year by Florida athletic director Jeremy Foley and president Bernie Machen.
The Gainesville Sun had earlier reported Muschamp's extension.
Even with last year's un-Florida-like 7-6 season in Muschamp's debut, Foley and Machen wanted to show their confidence in Muschamp by rewarding him with a second one-year extension.
"Dr. Machen and I believed in the leadership and direction of the football program this summer, and we made a decision to extend Coach Muschamp's contract an additional year this past August, prior to the start of the season," Foley said.
"The financial terms are unchanged, but he is now under contract for the University of Florida through the 2017 season."
Muschamp rewarded Foley -- and Gators fans -- for the faith in the first-time head coach. In his second season, Muschamp led the Gators to an 11-1 record, including a 4-1 mark against Top 25-ranked teams. Only No. 1-ranked Notre Dame defeated as many Top 25 teams this year.
Florida is ranked No. 4 in this week's BCS standings and is virtually guaranteed a BCS bowl berth. The Gators are expected to accept a Sugar Bowl berth on Sunday.
Muschamp, 18-7 in two years at Florida, received a five-year contract worth $13.75 million when he came to the school. Previously he was Texas' defensive coordinator and coach-in-waiting to replace Mack Brown. Muschamp's final year in 2017 will be worth $2.75 million.