However the RaboDirect PRO12 title has eluded the 46-year-old so far, Leinster losing in the last two finals to Munster and Ospreys respectively.
But Schmidt insists the good times can continue to roll on within the province, with the players' attitude the main reason behind him putting pen to paper.
"I am delighted to sign an extension to my contract here with Leinster," Schmidt said.
"I'm lucky to be part of such a positive coaching team and to have the top quality support staff we have.
"The professionalism of the players is a real asset and they constantly challenge themselves and each other to improve, which makes them a great group to coach.
"The wider Leinster community have really made my family and I feel welcome here and we have been fortunate to have enjoyed some memorable success on the field.
"Let's hope that with continued hard work - and a bit of luck - that there will be more bright days ahead."
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