The new deal will keep Zola at the club for the next four-years.
Steve Clarke will become the Premier League’s highest paid assistant with a mega £1m-a-year wage deal.
Clarke admitted: “We’ve already been talking about extending our contracts so we must be doing something right.
“Discussions are on- going but it will be sorted when it’s sorted.
“There’s no rush on my side or that of the club. I’m enjoying my time at West Ham.
“It was a strange move for a lot of people when I came but I feel justified in making it.”