The 64-year-old's previously had a deal that expired after the World Cup and talks on fresh terms were out on hold, with the Colombian Football Federation (FCF) stating in July that Pekerman was to "attend to personal commitments".
However, it was confirmed on Tuesday that the former Argentina coach is to carry on in his role with the South American nation - who he led to the quarter-finals of the World Cup - for the next four years.
"After several weeks of work, with a view to the new project for the period 2014-2018, the Colombian Football Federation led by its president Luis Bedoya Giraldo, is proud to announce the continuation for his cycle of Jose Pekerman," read a statement from the FCF.
"The executive committee expresses its pride in continuing with this great group of people that brought great results to the country."
Pekerman's new deal is a reward for an impressive showing at the World Cup by Colombia, who were eliminated in a 2-1 defeat to hosts Brazil in the last eight.
