The 42-year-old, in charge since 2014, steered his side to their first French top-flight title in 17 years last season as they finished eight points ahead of nearest rivals Paris Saint-Germain.
"The confidence the club has shown in me has always been essential to me," Jardim said on the club's website. "I feel part of AS Monaco and the Principality. I am therefore very happy to continue my work at AS Monaco.
"The last three seasons were exceptional, culminating in becoming champions of France. We will work with ambition to continue this project and continue to grow this club with the same passion that has inspired us from the beginning."
Monaco also beat Tottenham Hotspur and Manchester City on their way to reaching the semi-finals of the Champions League during 2016-17, before losing to Juventus in the semi-finals.