Klopp became the chief coach of the club in 2008 and has won three titles for the top German Bundesliga team, including leading them to the Uefa Champions League final against the eventual winner - Bayern Munchen.
There has been speculation linking him with a move to a number of high profile clubs across Europe, but with this extension, he put a stop to the speculations.
Jurgen Klopp
The general manager of the club, Hans-Joachim Watzke, said that one should not never separate things that belongs together and as a result they have extended the contract of the head coach again.
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''Since you should never separate that which belongs together, we 've extended the contract of our head coach and his team once again.''
Michael Zorc, the club's director of sports, added, ''He's the perfect coach for Dortmund.''
The contracts of Klopp's assistants, Peter Krawietz and Zeljko Buvac were also extended untill 2018.
After signing the contract, the coach said, ''We 're all still just a little bit in love with this club and the way things are progressing here.''
''We want to have the tranquility to plan the future of this wonderful club together.''
''Together we have written an exciting story here, maybe the most exciting and thrilling football story of the past few years.
''But I do not have the feeling that I have to start with any final chapter yet,'' he added.
Jurgen Klopp, talked to the media after Dortmund beat Real Madrid 4 - 1 in the Champions League match last season.
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