The 50-year-old Belgian succeeded the sacked Michael Beale in October and his arrival led to an upturn in Rangers form that included a Scottish League Cup triumph and briefly brought the club back into title contention before arch Glasgow rivals Celtic pulled clear in the closing stages.
But for the Rangers' board that was sufficient progress to offer Clement, whose initial deal ran until 2027, a contract extension.
"I have a really open and transparent relationship with the board," Clement told the Rangers website on Friday. "In every meeting that we have had you feel the passion and desire to make the club better and that is the same for me.
"I have fallen in love with the club, with the fans, the stadium and with the city. I see huge potential and now we need to make the club better and stronger in every department, that is our goal, and we are all really aligned about that."
Clement's new deal comes while he oversees a major revamp of the Rangers squad, with the experienced Ryan Jack, Borna Barisic, John Lundstram, Kemar Roofe and Connor Goldson having already left Ibrox and the likes of James Tavernier and Todd Cantwell both touted to leave as well during the current transfer window.
"Philippe and I had a far-reaching conversation at the end of May," said Gers chairman John Bennett.
"Our shared ambition was clear: the rebuild of the Rangers men's first team for the long term as well as short term.
"At that meeting we shook hands on this new contract and the board is delighted that the formalities have been concluded."
Rangers begin the new Premiership season away to Edinburgh club Hearts on Saturday.
