The new deal will keep the 48-year-old at the San Paolo until June 2013.
“Walter will be our coach for the next three years,” Napoli president Aurelio De Laurentiis told the club’s official website.
“We had to make some logical sense of our next situation and we did it.
“I don’t like fireworks that are followed by lengthy silences, I want consistency of results.”
Mazzarri added: “It’s a source of pride and great joy. We will give our all to this city and our splendid fans the satisfactions they deserve.”