The team made the announcement Tuesday.
Corbin was thrust into the job following the abrupt retirement of Jerry Sloan in February 2011. He guided the team to the playoffs despite a strike-shortened training camp and season.
Team officials praised Corbin for his poise and steadiness in developing a young team under difficult circumstances.
Corbin has a 44-50 record entering this season.
The 49-year-old Corbin is the seventh head coach in team history and only the fourth since the franchise moved to Utah in 1979. The South Carolina native played for nine teams during his 16-year NBA career.
SALT LAKE CITY — The Utah Jazz have exercised an option that will keep coach Tyrone Corbin under contract through the 2013-14 season.