The 46-year-old replaced Laurent Blanc after Euro 2012 and helped guide the 1998 World Cup winners to the last eight in Brazil last year.
Deschamps had already extended his contract to oversee France's Euro 2016 preparations – a tournament they will host – and will now prepare their long-term plans and look to mastermind their way to Russia in 2018.
"It was essential to have stability," said French Football Federation president Noel Graet. "Didier Deschamps will stay until the World Cup in Moscow (Russia, 2018).
"He has all our trust."
During qualification for the 2014 tournament France only lost once – to Spain – but needed to a play-off victory over Ukraine to reach the finals.
In Brazil, they topped Group E ahead of Switzerland and reached the quarter-finals thanks to a 2-0 win over Nigeria in the second round.
Deschamps' men saw their participation come to an end in the next round, though, as eventual winners Germany beat them 1-0 in Rio de Janeiro.
The coach will continue to be assisted by deputies Guy Stephan and Franck Raviot throughout the duration of his new deal.
‘Newcastle’s board said I was over the hill, so I left and played 108 consecutive games and won the European Cup – not a bad way to answer that accusation!’: Ex-Magpies defender reflects on career highlight after proving former side wrong
‘Parma viewed him as the perfect replacement for Adrian Mutu, who’d left to sign for Chelsea. But Manchester United’s interest was much more concrete’: Cristiano Ronaldo's 2003 transfer details revealed by former Sporting director of football
