He has led the club to Premiership finals in each of his four seasons in charge of the team, winning the title in 2009 and 2010, as well as taking the team to a Heineken Cup final in 2009 and lifting the LV= Cup this season.
Tigers chairman Peter Tom CBE said: "We are delighted that Richard has agreed a new contract. He has established a strong backroom team as well as developing an impressive 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 coming seasons."
Cockerill joined Tigers as a player in 1992 and became a member of the famous 'ABC Club' front row. He made 262 appearances, winning five league titles, two domestic cups and back-to-back Heineken Cups.
Capped 27 times by England, he also spent two years in France with Montferrand before returning to Tigers and then joining the coaching staff.
Cockerill said: "This is a very special place to work and to play your rugby, and I have been fortunate to be involved in some very successful teams in my time here. 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."