"We have accomplished some of our goals over the past two seasons, but there remains much left to be done," McCarthy said in a statement. "I am excited by the opportunity to meet those challenges and someday return another Lombardi Trophy home to Green Bay."
McCarthy, who had a year left on his original three-year deal, reportedly agreed in principle last month to the new contract, which is worth about $4 million per season.
"Mike brings tremendous passion, work ethic and structure to his position," general manager Ted Thompson said. "These are the traits we saw in him when he was hired, and we're very happy for the success we have had under his guidance."
McCarthy, the franchise's 14th head coach, tied a Packers' franchise record with 13 regular-season victories on the way to an NFC North Division Championship and bye in the first round of the playoffs despite having the NFL's youngest team.
After beating Seattle in the NFC divisional playoff round, the Packers lost 23-20 in overtime in the NFC Championship Game to the eventual Super Bowl champs, the New York Giants.
Both sides had hoped to get a contract done before the Super Bowl. Negotiations slowed because Thompson was on the road scouting, while McCarthy was preparing his team in the playoffs.
The 44-year-old McCarthy, a Pittsburgh native, has won 18 of his last 22 games after getting off to a 4-8 start in his first season as head coach in 2006.
Copyright 2007 by The Associated Press