
Klopp, 46, and his assistants, Zeljko Buvac and Peter Krawietz, had previously been under contract until 2016.
"We are still all somewhat in love with the club and the way things work around here," Klopp said.
Klopp took over as boss at the Westfalenstadion in 2008 and since then has led the club to back-to-back Bundesliga titles in 2011 and 2012, as well as the Champions League final last season, which they lost 2-1 to Bayern Munich.
At the end of this season he is set to equal Ottmar Hitzfeld’s record of six years in charge. The Switzerland coach oversaw Dortmund’s successful spell between 1991 and 1997.
In the past, Klopp has been linked with a switch to the Premier League, but he confirmed on Wednesday that he plans on staying at Dortmund for at least another five years.
"No other club has to call me until 2018," Klopp said.
In an interview released on the club's website, he added: "Of course, I was honoured that one or two top international clubs felt we're doing a good job. But to be honest, I'm not the kind of person that constantly wonders if the grass is greener on the other side. I'm not being flippant when I say it's so important in life to be at the right place at the right time. And for me, Dortmund is the perfect place at present."
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