New Tigers president Peggy O'Neal announced the new deal at Wednesday's club annual general meeting.
Hardwick's current contract was due to expire at the end of next season, but the Tigers have backed him for an extra two years.
"Having seen the impressive transformation our football team has made in the four years that Damien has been coach, the board had no hesitation in making the decision to extend his contract," O'Neal said on Richmond's website.
"We are convinced Damien has the right attributes to guide our playing group. He is totally driven in his quest to make Richmond the best team in the competition.
"The board and management will provide Damien every support to collectively give us the best chance of success."
The Essendon and Port Adelaide premiership defender has had a profound impact on Richmond in his four seasons as senior coach.
He took over as coach at the end of 2009, when the Tigers were second-last on the ladder.
He has led a gradual rise up the ladder under him and they made the finals this year for the first time since 2001 and only the second season since they lost the 1982 Grand Final.
While they blew their elimination final against Carlton, losing the game despite leading by nearly five goals, the Tigers are expected to keep improving.
