In a move that will delight supporters, the 50-year-old has committed his future to the Blades until 2021.
His future had been thrown into doubt last month amid boardroom wranglings between co-owners, Kevin McCabe and Prince Abdullah bin Abulaziz Al Saud.
The power struggle between the pair, partners since 2013, had alerted rival clubs with Sunderland understood to be keen to speak to Wilder about their own vacancy.
However, a breakthrough came last week and, as predicted in The Yorkshire Post on Friday, Wilder has joined his backroom team in signing new deals.
He said: “After lengthy discussions with both owners, I am delighted and proud to carry on leading Sheffield United forward in a positive manner, as we have previously shown in the last two seasons.
“I am confident we can concentrate fully on on-field issues, we are very much looking forward to pre-season and adding quality reinforcements to our squad in an attempt to build on our performance last season.”
Wilder led United to promotion from League One in his first season at the helm. The Blades had seemed on course for a tilt at the play-offs in 2017-18 only to fall away in the final few weeks.
It was then that the lifelong Blade voiced his concerns that the off-field problems were impacting on the club’s ability to progress.
Wilder signing the new deal follows a meeting earlier this month between McCabe and Prince Abdullah in London to discuss their respective bids to take full control.
The club has released a joint statement on behalf of the pair. It reads: “We are delighted to bring this news to all Sheffield United fans.
“It comes after another very positive season for the Blades under Chris and we are confident it will be welcomed by everyone with or associated with the club.
“The improvement in the club’s performance since Chris took over as manager two seasons ago is clear. He has brought renewed energy and passion to Bramall Lane with supporters proud of the way the team approach each match.
“We are both very pleased that Chris and his backroom team have agreed to extend their current contracts by a further year.
“While the past two seasons have been hugely enjoyable we can only focus on the future and that future includes Chris Wilder now having the extra year’s security to continue to build on his excellent work so far.”