The two-year contract extension will keep Klopp with the Bundesliga club until the summer of 2018.
Klopp’s assistants Zeljko Buvac and Peter Krawietz have also signed two-year contract extensions with Dortmund.
The 46-year-old told a press conference: “No one needs to call until 2018.
“We feel a lot of extraordinary trust and confidence in this club. This is a clear sign.
“We want to have the tranquility to plan the future of this wonderful club together.”
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.