The coach had been expected to leave the team after having two interviews for the coaching vacancy at the Minnesota Timberwolves, but decided to extend his stay at Memphis instead.
The 40-year-old said at a press conference: "There's a relief for me. It's like 'Whew, the owner and I are married now'. This feels really good and really positive.
"We had a good really good heart-to-heart, one-on-one conversation and we have a very shared vision of what we can do here.
"When you look at the general manager's situation, we want Chris [Wallace] to be involved in the organisation. Right now, he's helping get ready for the draft and stuff like that. I'm going to be involved in the candidates we bring in, no matter what the front-office situation is going forward."
Joerger took charge of the team last off-season, having spent the previous six seasons with the franchise as an assistant coach.