The former Tigers and England hooker became Leicester head coach during the 2008-09 season and was named rugby director almost two years ago.
He has led the club to four Premiership finals, winning titles in 2009 and 2010, in addition to reaching the 2009 Heineken Cup final and landing this season's LV= Cup.
Leicester chairman Peter Tom said: "We are delighted that Richard has agreed a new contract.
"He has established a strong back-room team as well as developing a strong playing squad, and he has continued to grow into the role as director of rugby with each season.
"Richard has played a key role at the club, both as a player and coach, over almost 20 years.
"He is very aware of the role that the club's unique culture plays in our present and our future, and we look forward to him continuing to drive the team forward in the coming seasons."
Cockerill, 41, added: "This is a very special place to work and to play your rugby, and I have been fortunate enough to be involved in some very successful teams here.
"I enjoy being able to work with players and staff who thrive in this environment, whether they come through the club's academy or come in from outside.
"We've got a very good squad and a very strong team behind the scenes, and I hope we can continue to bring success to this great club."