Elway has been the Broncos GM and executive vice president of football operations since 2011. The Broncos won the AFC West each of Elway's first five seasons as an executive and reached the Super Bowl twice, winning it in 2015.
"During these last six seasons, John’s clearly established himself as one of the best general managers in all of sports," team president and CEO Joe Ellis said in a statement. "He’s demonstrated impressive football instincts, a strong business acumen and a consistent ability to build competitive teams."
Elway's new deal will have him with the Broncos through 2021.
"I appreciate the trust and confidence that Joe has shown in me,” Elway said in a statement. “Pat Bowlen has always put outstanding leadership in place, and I’m grateful for the support Joe gives us to compete for championships each and every year."
Elway spent his entire 16-year playing career with the Broncos, winning back-to-back Super Bowls in 1997 and 1998. The 1987 NFL MVP was inducted into the Hall of Fame in 2004.
He is going into his seventh season in this role.