The new deal will take his tenure with the Hawks to 12 seasons.
"It's an enormous privilege to coach this great club, and I'm looking forward to the next few years," Clarkson told hawthornfc.com.au.
"We've still got some things that we want to achieve."
Clarkson has achieved plenty since replacing Peter Schwab as Hawks coach following the 2004 season.
At the top of his list of achievements are the 2008 and 2013 premierships.
And the 45-year-old is hungry for more success.
"Our big challenge, having just won the flag, is giving ourselves the chance to win it again," Clarkson said.
"We've got a great group of players, a terrific group of coaches and a really strong board and administration.
"So whilst we've got that stability it's really important that we make the most of our chances.
"We just want to try and finish top four, and then at the end of each year give ourselves the best chance to go deep into September."
Back in 2012, after yet another loss to Geelong, then-Hawthorn president Jeff Kennett claimed that "six to eight years was as long as any coach should stay at any club".
But Clarkson finds no reason to go along with such sentiments.
"Football clubs change so much," Clarkson said.
"They change people, in regard to your administration, your board, your players, your coaching staff, so there's always new challenges.
"I'm finding more and more that stability is really important at a footy club. It's helped us, I think.
"There's so much change in the game. If you can keep your key posts reasonably stable, then that's really important for your club.
"I'm really looking forward to what the next few years can bring to this club."
Twitter: @AFL_AdamMcNicol
