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Rose, 46, led Leipzig to the German Cup and Champions League qualification in 2022-23, his first season in charge of the club. The Leipzig-born manager joined after now Belgium coach Domenico Tedesco was sacked in September, picking up more points than any other Bundesliga side over the remainder of the season.
"Leipzig is my city and eastern Germany is my home," Rose said in a statement. "I'm delighted that the management have put their faith in me so that I can continue to be a part of RB Leipzig and help write more history."
Leipzig sporting director Max Eberl praised Rose, saying he was "a perfect fit for Leipzig and the RB way of playing football". Despite securing the German Cup, Leipzig are set to undergo a rebuild this season, after losing several star players.
