Miles will receive annual compensation of $4.3 million per year for seven years under the terms of the new contract amendment. His previous contract paid about $3.75 million annually through 2017.
The new deal will be presented to the LSU Board of Supervisors on Feb. 1.
"Les Miles is one of the most successful coaches in America and he has the LSU program in position to compete for championships each and every year in the most dominant football conference in the country," LSU athletic director Joe Alleva said in a statement. "He recruits at an elite level, his players graduate and he is a respected member of the community. We are proud he will lead the LSU football program for the long-term future."
The Tigers went 10-3 this season and lost to Clemson in the Chick-fil-A Bowl.
The 59-year-old Miles has an eight-year record of 85-21 at LSU. He led the Tigers to a national title in the 2007 season.
Miles graduated from Michigan in 1976 and played for the Wolverines under Bo Schembechler in 1974-75. He also coached on six Big Ten championship teams and 10 bowl teams at Michigan in two separate stints (1980-81, 1987-94).
His first stint as a head coach came at Oklahoma State from 2001-04. He guided the Cowboys to a record of 28-21, then took over at LSU in 2005 after Nick Saban left for the NFL.
