After a fantastic start, the Pacers were just 23-19 in the second half of the season and were in danger of being upset by the No. 8 seed Atlanta Hawks in the first round of the playoffs, leading to speculation that Vogel's job may be in jeopardy.
Vogel, who is known for being a steadying force who supports his players and sticks to his strategies, was able to right the team as it rallied to reach the conference finals.
Vogel has led the Pacers to back-to-back appearances in the Eastern Conference finals, losing to the Miami Heat both times, including a 4-2 series loss this season that concluded with a 117-92 defeat Friday night.
He signed a contract extension in 2013 that carries through the 2014-15 season.
Since taking over in the middle of the 2010-11 season, Vogel is 167-100 in the regular season and 28-26 in the playoffs.
Yahoo! Sports first reported that Pacers management planned to bring back Vogel next season.