General manager Gar Forman announced the move Monday. The Bulls had exercised the team's option for next season this past spring. The new deal takes effect after this season.
Thibodeau was the NBA's Coach of the Year for the 2010-11 season and the runner-up last season.
The Bulls headed into the season with star point guard Derrick Rose out until at least January as he recovers from left knee surgery.
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