McElwain is entering his third season coaching the Rams. After going 4-8 in his first year with the team, Colorado State improved to 8-6 last season and won the New Mexico Bowl.
The contract includes a base salary of $1.5 million, up from the $1.35 million base salary in his initial five-year contract, signed in 2011. His potential bonus of $150,000 related to the team's APR score remains the same. The deal also includes optional extensions for up to five seasons beyond the initial terms.
"Jim McElwain has breathed new life into our football program," said interim athletic director John Morris.
McElwain's new contract includes an initial buyout of $7.5 million and possible future buyouts of $7.5 million or more, as long as he has five years remaining on his contract.
Before his appointment at CSU, McElwain served as the offensive coordinator at Alabama for four seasons.
- Molly Geary