Phillips, 40, will earn a base annual salary of $175,000 and raises of at least 4 percent each year depending upon his performance review. He also will get bonuses for any conference, regional and national championships.
The contract runs through June 2018, and could go through the 2020 season (with an automatic two-year rollover) unless either Phillips or NDSU decides against it.
Phillips has a 108-77 record entering his seventh season. He led NDSU to an NCAA Tournament appearance in 2009, where the team lost to Kansas in the opening round.
The Bisons return all five starters from their 2012-13 team that went 24-10 in 2012-13 and played in the College Basketball Invitational for the second consecutive season. Leading the returnees is senior forward Marshall Bjorkland and senior guard Taylor Braun. Bjorkland, a first team All-Summit League selection, averaged 11.5 points and 5.9 rebounds a game last season while Braun, a second team all-conference selection, paced the team with 15.4 points a game.