The new deal runs through the 2022 campaign. According to USA Today, the $2.6 million average salary will make Norvell the highest-paid coach of the non-power conference programs.
Norvell, 36, is 18-7 in two seasons with the Tigers.
Norvell addressed the new deal on his Twitter account complete with a picture of him signing the contract while in the company of Memphis athletic director Tom Bowen.
"So excited about the future of Memphis Tiger football and to announce that I have signed an extension to continue to lead this great program!," Norvell wrote.
Norvell's name had recently arose as a possible candidate for the Arkansas coaching vacancy.
The Tigers are 10-2 this season and will play Iowa State in the Liberty Bowl. Memphis went 8-5 in Norvell's first season.