Last month, Rice, a 45-year-old UNLV graduate, took his name out of the running for the top job at South Florida.
The deal the regents approved at their meeting in Las Vegas adds a two-year extension good through the 2018-19 season.
The school said in a statement it includes an incentive package based upon academic and athletic success but did not disclose any of the terms.
Rice has compiled a record of 71-32 in three years at UNLV. His teams have won at least 20 games in each of those seasons and made two trips to the NCAA tournament.