The 49-year-old has enjoyed a meteoric rise through the ranks and has guided Clemson to two national titles in the past three years.
The university said the deal is the largest total contract in college football history, although Swinney is thought to be making a similar average salary to Alabama coach Nick Saban.
“I am grateful and humbled by the incredible commitment Clemson has made to me, my family and our football program,” Swinney said in a statement.
“With this contract, we make a collective statement that we intend to continue pursuing championships and developing total student-athletes for years to come.”
The bumper new deal, which runs until 2028, is reward for the job Swinney has done since taking over.
The former interim coach has led an overhaul of the Clemson football program and his latest side was the first major college football team in the modern era to go 15-0 — after it beat the Alabama Crimson Tide 44-16 for the national title in January.
He has guided his team to 116 wins and is one of only two football coaches in school history to reach the century mark.
Over his 10 full seasons as head coach, Swinney’s influence has transcended the field of play and moved into the classroom, with 26 players on the 2018 roster having already earned a degree.
“Dabo’s leadership of our football program has brought value, exposure and unprecedented levels of success not only to our athletics program but to the entire university,” the university’s director of athletics, Dan Radakovich, said in a statement.
“He has demonstrated the ability to consistently achieve at the highest level on and off the field, and he has done so with a commitment to integrity and core principles.”