The Rotterdam powerhouse have successfully concluded negotiations with the experienced coach, who will supposedly stay put at the Eredivisie club for another season
The 49-year-old's previous deal was due to expire at the end of the 2012-13 season, but both parties have now successfully concluded talks over a new contract.
"I have already said more than once that I am feeling very well at Feyenoord. The club also stated on several occasions that they wanted to continue with me, so there wasn't much to discuss," Koeman commented on the Feyenoord website.
Koeman arrived at the Rotterdam giants in the summer of 2011, and guided them to second position in the Eredivisie table last term. They currently sit equal-fourth in the standings.
The former Netherlands international previously coached clubs such as Vitesse, Ajax, Benfica, PSV, Valencia and AZ.