Wagner's deal with the club was up was at the end of last season, and at the same time that the Terriers were competing for promotion, he was being linked with clubs both in the Premier League and in Germany.
However, after Huddersfield secured promotion to the top flight, talk quickly turned to how soon would it take for the club and Wagner to agree new terms and it has now been revealed that he has committed his immediate future to the Yorkshire outfit.
The 45-year-old arrived at Huddersfield from Borussia Dortmund II in November 2015 and he was successful in keeping his new team in the second tier.
Last season saw Huddersfield spend the entire campaign battling it out for automatic promotion and although they missed out on the top two, they won successive penalty shootouts against Sheffield Wednesday and Reading to earn their place among English football's elite.
Wagner has registered 37 wins and 17 draws in his 86 matches in charge.