The Leipzig-born manager, who previously had stints in charge of Borussia Dortmund and Red Bull Salzburg, took over in September 2022 and won the German Cup in the same season.
Rose followed it up with a dominant 3-0 win over Bayern Munich in the German FA Supercup at the start of the 2023-24 campaign.
"I'm happy that we're continuing together. I come from here and feel at home in the city and the region," Rose said in a statement.
"The club is working in the background to ensure that we put together a strong team again. We feel that there is more to be done and we always want more. We are ambitious, we remain ambitious and we look forward together."
In May, the coach shot down rumours he was set to follow former Leipzig sporting director to Bayern, saying "I think Bayern will be OK without Marco Rose."
The 47-year-old coach took Leipzig to fourth-place last campaign in a rebuilding year after the club lost several first-team players including Josko Gvardiol, Christopher Nkunku, Dominik Szoboszlai and Konrad Laimer,
Rose's announcement comes days after in-demand striker Benjamin Sesko elected to extend his deal at the club.
The coach has won 53 of 86 competitive matches with the club for an average points total of 2.01, the best of any RB Leipzig manager since they were first promoted in 2016.
