The 52-year-old, who is also president of basketball operations with the NBA franchise, took the position in June 2013.
Rivers oversaw a superb regular season last term as a 57-25 record earned a second straight Pacific Division title, and will now lead the Clippers through until 2019.
The Clippers were defeated 4-2 in the Western Conference semi-finals by the Oklahoma City Thunder, but Rivers has done enough to convince owner Steve Ballmer that he is the man to bring success to the team.
"This is an important day for this organisation," Ballmer said in a statement. "I am excited to work with Doc for a long time as we build a championship culture that will deliver results both on and off the court.
"Not only is Doc one of the best coaches and executives in the game, but he continually embodies the hard core, committed and resilient character and winning culture that the Clippers represent.
"It was one of my top priorities to ensure that he was firmly in place as the long-term leader of this team."
Rivers added: "Steve has shown a clear and determined desire to make the Clippers one of the most elite, first-class and championship organisations in all of professional sports.
"We know we have work to do to get there, but I am motivated by the challenge and thankful for the opportunity to stand together with Steve as we continue to move toward our goal of winning an NBA title."
Rivers has 644 regular season victories in 16 years as a coach, the third most among active head coaches and he led the Boston Celtics to the 2008 NBA Championship.