McCartney, who had one year to run on his deal, will now lead the Bulldogs until at least the end of 2016, ensuring he sees the list through its rebuild and into greener pastures.
The Bulldogs finished the 2013 season impressively, winning four of their last six games to suggest they could be the ‘climber’ of next season.
"I'm a bit embarrassed to behonest. I want to get stuck into coaching and have a good summer of trainingwith our players," McCartney said of his new contract on Wednesday.
"I love working at thisclub. I love this club. I feel a deep responsibility to do the best job withour coaches for our players so that we can become a really good footy teamevery week.
"It's nice at the moment butthe reality is that we've still got a big job in front of us to get better andget up the ladder.
"We know we made some goodinroads last year but I looked at the ladder from 2013 again the other day, andwe hadn't moved from 15th, we were still there, so we've got a fair way togo."
Chief executive Simon Garlick said, "On everything that we see and the improvement we have seen, it's logical for us to extend his contract."We had a clear vision when we appointed him about where we wanted to go and we knew we were going to face some challenges in the initial part of that.
"While there was clear improvement in some of the on-field measures in the later part of the year, we are under no illusion and don't underestimate that we've got a long way to go.
"But this is another step in the journey to becoming a sustainable and successful club."
McCartney was appointed senior coach of the Bulldogs in September 2011 after 14 years of coaching experience in the AFL, including stints with Geelong, Essendon and Richmond.
Twitter: @AFL_Nathan