Deschamps' contract expired after the World Cup in Qatar where reigning champions France lost to Argentina in a penalty shootout after a thrilling final on December 18.
It had been reported that French Football Federation (FFF) president Noel Le Graet only wanted to give Deschamps a two-year extension until the 2024 European Championship but the coach had insisted on staying in charge until the next World Cup in the United States, Canada and Mexico.
"I am going to announce something which for me is an immense pleasure, and that is that the president has decided to extend (my contract) until 2026," Deschamps said at an FFF general assembly.
"I thank the president for his constant support and his continued confidence in me," Deschamps added. "It is essential for the France team to function well."