Laws has been linked with a move away from the club in recent weeks.
“My ambition when I took this job was to take Sheffield Wednesday back to the Premier League and that is still something that drives me on,” Laws said
“I’m delighted to sign a new contract here and, while there have been changes at the club during my initial two years at Hillsborough, we have a firm plan in place to improve the footballing operations at the club and drive Sheffield Wednesday on up the league.
“I would like to thank the Owls fans for their tremendous backing during my initial two years at the club and I will endeavour to pay back the supporters with success on the pitch.”
Kaven Walker, the club’s chief executive added: “The club is delighted that Brian Laws has signed a new contract and the fact that negotiations have been concluded so swiftly shows how much the manager wanted to stay with Sheffield Wednesday.
“It also illustrates the club’s mutual desire to retain his services.”
