The four-time championship-winning coach will make an NCAA-best $6.5 million in base salary per year through Jan. 21, 2022. The new contract adds two years and roughly $1 million annually in salary from the previous raise he received in April 2013.
Saban also will be awarded a $400,000 completion bonus per year, bringing the total contract to $55.2 million.
"We are honored by the commitment the University of Alabama has made to us with this new contract," Saban said in a statement. "It is certainly a mutual agreement in terms of our commitment to the University of Alabama. We will continue to work hard to keep our football program among the nation's elite."
In addition to having the highest-paid head coach in college football, Alabama also boasts one of the highest-paid coordinators in the game. Kirby Smart, Saban's longtime defensive coordinator, will earn more than $1.3 million through Feb. 28, 2017, after the compensation committee voted to extend his contract by one year.
Lane Kiffin, who was hired as Alabama's offensive coordinator in January, was approved for a three-year contract that will pay him $680,000 the first two years and then $714,000 the year after that.
New defensive line coach Bo Davis was signed through February 2016 at $450,00 per year, and inside linebackers coach Kevin Steele was also signed through February 2016 at a salary of $700,000 per year.
The UA compensation committee also approved contract changes for the rest of the Crimson Tide's assistant coaches:
• Offensive line coach Mario Cristobal was extended one year through February 2016, with an increase in salary from $475,000 to $500,000.
• Outside linebackers coach Lance Thompson was extended one year through February 2016, with an increase in salary from $400,000 to $428,000.
• Tight end/special teams coach Bobby Williams was extended one year through February 2016, with an increase in salary from $400,000 to $428,000.
• Running backs coach Burton Burns was extended one year through Feb. 2016, with an increase in salary from $315,000 to $335,000.
• Wide receivers coach Billy Napier was extended one year through February 2016, with no increase in salary.
• Strength and conditioning coach Scott Cochran was extended through February 2016, with an increase in salary from $355,000 to $395,000
"My passion has always been to develop young men to their full potential as student-athletes," Saban said. "We've had great success in that area at Alabama and I'm appreciative of all the support and the resources we receive from the administration in order to make that happen. ... The past eight years have been productive in so many ways and we are grateful to call Alabama our home."