The new deal will keep Kean in charge at Blackburn until the summer of 2013.
He told the club’s official website: “I am delighted to commit my future to Rovers at the start of what I see as a massively exciting new era for the club.
“The owners have shown great faith in me and I will do all I can to repay them.
“This is a great opportunity for me and I intend to grasp it with both hands.”
“We have great confidence in Steve, someone who impresses us with his work ethic, enthusiasm, positivity and football philosophy,” Indian owners Venky’s chairperson Anuradha Desai said.
“We feel that the playing squad is in very safe and capable hands and we look forward to working with him.
“Stability is very important to us and this contract is further evidence of our desire to achieve such stability at the club.”
