The former Serbia coach assumed the reins at Stadio Luigi Ferraris in November, guiding the team to a 12th-place finish in Serie A.
His future appeared to be in doubt just a couple of days ago when Mihajlovic gave his tenure a score of "eight out of 10" and refused to commit to the club.
He had been mooted as a possible replacement for Antonio Conte at Juventus should the three-time league winning coach leave Turin - however he has now chosen to stay.
And Sampdoria confirmed on Tuesday that the coach would remain in his position for another season.
"UC Sampdoria Spa communicates that it has renewed until June 30, 2015, the contractual relationship with Mr Sinisa Mihajlovic as head coach of the first team," it read.
Mihajlovic replaced Delio Rossi, who had overseen the team's slump into the bottom three of the Italian top flight earlier in the campaign.
