The new deal ends speculation over the 48-year-old's future after he attracted interest from several clubs, including Fulham and Crystal Palace.
Lampard's renewal comes on the back of a remarkable rise at the Coventry Building Society Arena. Appointed in November 2024 with the Sky Blues sitting 17th in the Championship and only two points above the relegation zone, he transformed the club's fortunes by leading them into the play-offs in his first season, where they were beaten 3-2 on aggregate by Sunderland in the semi-finals.
A year later, Coventry completed their return to the top flight in style. Lampard's side won the Championship title by 11 points from second-placed Ipswich, recording 28 league victories - the highest total in the club's history - to end a quarter-century absence from the Premier League.
The former Chelsea, Everton and Derby County boss has won 45 of his 82 matches in charge of the Midlands club.
"I'm delighted to have signed a new contract, it's a real honour to represent this club," Lampard said.
"After the incredible work of everybody to get promoted and win the Championship, it was important to enjoy the moment, and we certainly did as a city.
"Our job then as staff, and for the players of course, is to firstly recharge but also focus on what we want to do and what we need to for next season. There's a lot of work to do on and off the pitch as a football club."
Lampard also thanked the supporters and club owner Doug King for their backing, adding that the spirit and togetherness built last season was "something great to be part of" and one the club now wants to continue.
Executive chairman Doug King welcomed the agreement, saying the club had been on a "huge upward trajectory" since Lampard's arrival and that it was fitting he would lead Coventry into their first Premier League campaign "for a generation".
Coventry's long-awaited return to the top flight begins against reigning champions Arsenal at the Emirates Stadium on Friday, August 21.
Brighton have completed the signing of defender Pascal Struijk from Leeds United in a deal worth around 20 million pounds, with the Dutch centre-back signing a five-year contract at the Amex Stadium.
Fulham have turned Jonah Kusi-Asare's loan spell into a permanent move, completing the signing of the teenage striker from Bayern Munich on a long-term contract.
Manchester City have completed the signing of highly-rated French youngster Mathys Detourbet from fellow City Football Group club Troyes in a deal reportedly worth 25 million euros.
The growing connection between Jamal Musiala and Florian Wirtz has become one of Germany's most promising attacking developments at the FIFA World Cup 2026.
