Alongside Pressley, assistant manager Neil MacFarlane & development coach Darren Murray have also signed new contracts.
Pressley & MacFarlane joined the club from Scottish side Falkirk in March 2013, taking over from Mark Robins who joined Championship side Huddersfield Town.
Murray however, joined the club in October last year, leaving Scottish Premier League side Hearts.
Speaking to the club’s official website, Chief Executive Steve Waggott praised the management team for their work in the 18 months they’ve been at the club.
“We are absolutely delighted that Steven and Neil have agreed new deals with the club.
“In Steven, we have a manager whose long-term vision absolutely mirrors that of the football club. We want to achieve success on the pitch and, integral to that, is identifying and developing the very best talent around.
“We’ve seen over the past 18 months the positive impact the players from our Academy have had as they have come into the first team and we want to very much continue and expand that model and Steven is front and centre of that.
“He has, quite rightly, become extremely popular with our supporters since taking over as manager. He has faced adversity head-on and, considering the circumstances, did a wonderful job in keeping the club in League One last season.
“His passion, drive and commitment to Coventry City has been clear for all to see over the past year-and-a-half and that really manifested itself at the first game back at the Ricoh Arena.
“We believe the length of contract underlines both his desire to see the job through he has started and also our belief that we have one of the best young managers around.”
“Success at Coventry City, however, will not come down to a single individual and it will require everyone at the club, including our supporters, pulling together.
“Neil is another key figure within that and forms part of the coaching team that we feel can deliver success.
“We are thrilled that he has signed a new contract too and the stability that brings will provide the bedrock for the whole club.”
After signing his new contract, Pressley added; “I have always felt that there is huge potential for Coventry City. We’ve only just begun to scratch the surface in the 18 months that we have been here and I look forward to continuing the job we’ve started.
“I was so proud to lead the club out at the Ricoh Arena on Friday night and it brought home to everyone just how much Coventry City Football Club means to the people and the community of Coventry.
“I am delighted that Neil and Darren have also signed new contracts too and I now have the opportunity, with them and all of the staff here, to deliver the success that the city has been starved of for so long and thoroughly deserves.”
Steven Pressley Coventry City Football Club record:
(All JPT games that resulted in a penalty shoout-out have been classed as draws.)