The 53-year-old has put pen to paper on a new deal less than a week after leading his nation to qualification for next year's World Cup in Brazil.
The deal will run until the end of Euro 2016 and Low has said that he is pleased to continue his work as head coach.
"I'd like to thank the DFB for their trust in me," Low told the DFB's official website.
"The work we have all done has been outstanding and this is a positive sign of how far we have come. There's is huge motivation and great passion from the team. We all want to achieve great things. I'm delighted to have extended."