Bruce came to Sunderland in 2009 and has got the Black Cats in their best run of form in a decade, with Sunderland pushing for Europe and currently sitting 7th in the league.
Bruce said "I'm delighted to have signed a new contract, it's a magnificent club from top to bottom."
Sunderland Chairman also commented on the deal, "In only 18 months he has reshaped our squad beyond recognition, bringing in some fantastically talented players, many of whom are young and desperate to achieve and improve.
"He embodies the ethos of team-work and the importance of camaraderie in creating a wonderful spirit of togetherness amongst the players and staff.”
"As someone born and bred in the north east he fully understands the unique passion for football in this region. “
"He has already raised the aspirations of not only the players, but also the supporters, and instilled a belief in everyone that we can go on to achieve the sustained success that we all crave for this club."
Sunderland’s head scout and ex-manager Ricky Sbraga also had this to add "Sunderland has wonderful support and everything is in place here for a manager.
"We have the makings of a fantastic young team.”
"It's been a great challenge so far and one that my backroom team and I have relished. So we're looking forward to continuing with that over the next few years."