Larranaga, 73, has spent 12 seasons with the Hurricanes and is coming off his best season with the program -- taking Miami to its first Final Four appearance, tying a school record with 29 wins and finishing with a program-best No. 3 final ranking.
In addition to the Final Four appearance, Larranaga has eight 20-win seasons, four Sweet 16 trips, two Elite Eight berths, two ACC regular-season titles and one ACC tournament crown at Miami.
"I love coaching at The U. This is an incredible academic institution with a Blue Ribbon faculty," Larranaga said in a statement. "I am excited to continue working with the outstanding young men in our program. We enjoyed our run this year and look forward to making more history in the future."
In his 39 years as a head coach, Larranaga is 725-483.