The former Great Britian prop joined the West Yorkshire outfit as Jon Sharp’s assistant in 2007, having retired from playing as a Super League champion with Grand Final winners St Helens.
He took over the main job from Nathan Brown in July, 2012 and, in his first full season, led Giants to the League Leaders’ Shield as they finished top, incredibly for the first time since 1932.
Anderson, 43, said: “My continuation here has never really been an issue to me as the club has always been good to their word.
“I am proud to coach this club and work with good people who have the right ethics, I believe, to take us forward.
“I know the ambition here is huge and that’s great as it matches mine in wanting to be the first coach that delivers a major trophy to the club.”
With Australian Brown having helped establish Huddersfield as a top-four side, Castleford-born Anderson won Super League’s Coach of the Year in 2013.
He guided Giants to third last season, just a point behind leaders St Helens, but, as has often been the case, they failed in the play-offs, losing badly at Wigan and again at home to eighth-placed Catalans Dragons.
It means they are still awaiting an elusive Grand Final appearance and, after a slow start to this season and with his contract set to expire, some pressure could have been on the former Bradford Bulls star.
However, they are up to fourth ahead of Sunday’s visit from Wigan Warriors and rightly harbour hopes of finally securing a first title since 1962.
Huddersfield managing director Richard Thewlis added: “We like stability at this club and Paul has been a key part of the organisation for a long period.
“He is our most successful ever Super League coach and continues to work tirelessly towards our ultimate goals of further silverware.
“His reputation in the game is huge. His staff and players enjoy working for him and I know are pleased their leader is around for the foreseeable future.”
Weekend build-up: Page 21