Shakhtar currently enjoys a commanding position at the top of the Ukrainian Premier League, with second-placed Metalist Kharkiv sitting 15 points behind the title holder. Shakhtar also made a valiant run to the UEFA Champions League knockout stage before being eliminated by Borussia Dortmund, which came after star attacker Willian was sold to Anzhi Makhachkala.
The Romanian coach, who is on the verge of securing his seventh Ukrainian league success this season, is happy to stay at the club, despite being linked with a return to Serie A side Inter recently.
"I love our fans. I love our players. I believe in my assistants," Lucescu told the club's official website. "I am convinced that together with the club, by joining our efforts, we are able to conquer new heights."
Meanwhile, Shakhtar's president Rinat Akhmetov insisted financial issues did not play a part in negotiations over the new deal.
"When we talked about the contract, money was not in question at all," Akhmetov said. "I was interested in only one major thing: Did this team reach their maximum or they could make a step forward?"
After the international period, Shakhtar will resume domestic league action with a trip to Karpaty Lviv on March 30.