The Blues have given Leon MacDonald a two-year contract extension through to 2023 after the Super Rugby side won their first championship in nearly two decades.
MacDonald, who took over the Blues from Tana Umaga in 2019, guided the Blues to the Super Rugby Trans-Tasman title in June after they finished third in New Zealand's domestic Aotearoa competition.
"From a rugby standpoint this club has made huge strides, but we know there is a lot more to do," MacDonald said in a team release.
"We also know there is a massive talent pool here and our development as a Super Rugby club has so much potential."
MacDonald said his immediate focus would be on finding a replacement for Umaga as defence coach after the former All Blacks captain departed the role to pursue business interests.
The Blues will compete in next year's Super Rugby Pacific, as Fiji Drua and Moana Pasifika join New Zealand and Australian sides in a new 12-team competition.