With two games remaining in their current qualification campaign, Wales still have the opportunity to seal at least a play-off place to next year’s competition in Slovakia.
Wales sit second in Group I, having won three, drawn two and lost one of their six games so far.
The Football Association of Wales’ Chief Football Officer, David Adams, said: “We are delighted that Matty has agreed to sign a contract extension to continue his role as head coach until 2028.
“He has already achieved a number of impressive results in his first qualifying campaign in charge and put the team in a good position heading into the final two games.
“This extension will enable us to continue our alignment and progression of players into our senior team for years to come.”
Wales face Iceland in Reykjavik on 10 September before finishing the group stage of qualifying at home against Czech Republic on 11 October.
