Ausmus, 47, is staying for a fourth season despite the team missing the postseason for the second straight year. Detroit (86-75) finished eight games back in the American League Central and 2½ games back of an AL wild-card slot. The Tigers were eliminated from the wild-card race on the last day of the regular season.
There was speculation that Tigers general manager Al Avila would dismiss Ausmus, as there was last year, when Detroit finished in last place and saw its first losing season since 2008. In 2015, Avila cited injuries as a big part of the team's poor performance, and injuries were an issue again this season.
Ausmus replaced Jim Leyland as manager in November 2013, with the Tigers having won the AL Central three years in a row and having reached the AL Championship Series all three years.
The Tigers continued their reign in the AL Central in Ausmus' first season but were swept by the Baltimore Orioles in the AL Division Series.
Overall, the Tigers are 250-234 under Ausmus.
This is Ausmus' first major league managerial position, although he managed Israel's team for the World Baseball Classic.
He previously played catcher in the majors from 1993 to 2010.
Information from ESPN's Katie Strange and The Associated Press was used in this report.