Details of the contract changes are still in the negotiation process and will be announced at a later date, and are subject to approval of the LSU Board of Supervisors. Miles' previous contract paid about $3.75 million annually through 2017.
Miles, who reportedly received a lucrative offer to coach at Arkansas, guided the Tigers to a 10-2 record this season.
The 59-year-old Miles brings an eight-year record of 85-20 at LSU into the Tigers' 2012 bowl game. He led LSU to a national title in the 2007 season.
"Les Miles is one of the premier coaches in the country and has LSU in contention for championships year in and year out," vice chancellor and director of athletics Joe Alleva said. "Only two coaches in the 119-year history of LSU football have coached as many years at this school and only one has won more games. Les Miles has made a commitment to LSU and LSU is solidifying its commitment to Les Miles."
Miles graduated from Michigan in 1976 and played for the Wolverines under Bo Schembechler in 1974-75. He also coached on six Big Ten championship teams and 10 bowl teams at Michigan in two separate stints (1980-81, 1987-94).
His first stint as a head coach came at Oklahoma State from 2001-04. He guided the Cowboys to a record of 28-21, then took over at LSU in 2005 after Nick Saban left for the NFL.
