The lack of a written contract had led to some speculation towards the end of the season that Guardiola could leave, with suitors said to include Inter Milan, who knocked his side out of the Champions League this season.
Guardiola, who spent most of his playing career at Barcelona and coached their B team before taking control of the first-team squad in June 2008, signed a similar one-year deal last summer.
As he looks to continue his success at the club, Guardiola will have the services of David Villa for the forthcoming season after the Nou Camp outfit signed the striker for £34.2m from Valencia just before the World Cup.
His squad could be bolstered further as Barcelona try to lure Spanish international midfielder Cesc Fabregas from the clutches of Arsenal.
However, their attempts to sign the Gunners star could prove problematic from a financial perspective.
Barcelona failed to pay their players at the end of June and have sold Dmitro Chygrynskiy and Yaya Toure as well as taking out a £129m loan to generate extra funds.
The loan was signed on Wednesday and a club statement read: "The operation forms part of a new strategic plan devised by the new board, presided over by Sandro Rosell."
Rosell told radio RAC1: "Club members can relax. The club is not facing bankruptcy and this week we will have the tools... to pay the salaries of our players, technicians and employees."
He has also stated that the club have 89m euros (£75m) to spend on players, although he has said Barcelona "would not pay the 50-60m euros that I have read about" for Fabregas.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.