The Canaries are preparing for the start of the Premier League campaign after Farke led them back to the top flight at the first time of asking.
The 44-year-old took charge of the club in 2017 and won promotion to the Premier League in his second season at the helm.
While relegation ultimately followed, Farke remained in charge and guided the East Anglian side to the Sky Bet Championship title last year.
He has now agreed terms to keep him at Norwich until 2025 and is pleased to be staying put.
“I’m absolutely over the moon and feel pretty emotional in such a moment,” he said in a club statement announcing the new deal.
“I’m unbelievably grateful for all of the trust and support. It is a pleasure to be allowed to continue to work on this level with such a special club.
“I must also thank (sporting director) Stuart Webber for his trust and backing, my staff and players, as well as the supporters. We have a pretty special relationship in this club.
“Now it’s about going the next step, doing everything we can to make sure this club becomes an established Premier League side.”
As well as Farke, Norwich also signed assistant manager Eddie Riemer, head of performance Chris Domogalla and first-team coach Christopher John to new four-year contracts.
“It’s great news for the football club,” Webber said.
Now it’s about going the next step, doing everything we can to make sure this club becomes an established Premier League side.
“Daniel and his staff have been a huge part of what we are building and to tie them down to new deals was one of our key objectives at the start of the summer.
“We’re in an uncertain world at this moment in time, so to have some stability and security at the football club is important.”
So far this summer Norwich have signed Kosovo winger Milot Rashica from Werder Bremen, goalkeeper Angus Gunn from Southampton and former Nice midfielder Pierre Lees-Melou.
They also completed the season-long loan signing of Chelsea and Scotland midfielder Billy Gilmour but have lost Emiliano Buendia to Aston Villa and have seen full-back Max Aarons linked to a number of rival Premier League clubs.