Nagelsmann, 29, became the youngest coach ever in the Bundesliga and has been touted as Carlo Ancelotti's potential successor at Bayern Munich.

Hoffenheim sporting director Alexander Rosen, who had been linked with Arsenal earlier this year, also put pen to paper on a fresh three-year deal until 2020.

Nagelsmann told the club's official website he is looking forward to "the challenges ahead" and said that Rosen's new contract "is a milestone on the path we've taken because it's strong signal for the club, the team as well as the staff members and a sign of continuity and stability."

Hoffenheim executive Peter Gorlich added: "With the efficient application of limited financial means they formed a team which not only thrilled audiences in Germany with fresh and courageous attacking football, but also opened the door to Europe for TSG Hoffenheim for the first time ever."

He added: "The recent success carries their thumbprints."

Having been appointed as Hoffenheim's head coach amid a relegation fight in 2016, Nagelsmann not only managed to secure his club top-flight status in his first half-year in Bundesliga, but also lifted them to unprecedented heights as the club finished fourth in the 2016-17 season.