Kovač joined Dortmund in early 2025 on a deal running until the summer of 2026. He subsequently agreed an extension through to 2027, and the latest agreement provides further security as the club continues its development under his leadership.
The decision comes after Dortmund collected 13 points from their first five league matches, leaving them second in the Bundesliga table.
Kovač welcomed the extension, saying the club had established a clear direction and wanted to build on the foundations already laid.
“Together, we have mapped out a clear course for development and laid an important foundation for the future. We want to build on that. We have a clear vision of how we play football, how we perform as a team and what is required to achieve our goals,” he said in comments published by the club.
“The decisive thing is that we do not become complacent, but work every day to get better. We see great potential and are convinced that, together and with full conviction and great determination, we can still achieve a lot.”
The extension reflects Dortmund’s desire for continuity after Kovač’s work since his appointment. The club have backed him to continue developing the squad rather than introduce another change in leadership.
Sporting director Lars Ricken also expressed satisfaction at securing the coach’s future, praising the progress made during his time in charge.
“We have been on a very good path with Niko Kovač since he took over just over a year and a half ago. He has continuously developed the team and is highly valued at the club,” Ricken said.
“Extending Niko’s contract is also a clear signal of continuity and stability at Borussia Dortmund.”
The new agreement gives Kovač a longer period in which to implement his ideas and pursue the club’s ambitions. Dortmund’s strong opening to the league season has provided encouragement, although maintaining that form will be the next challenge.
Their immediate focus turns to the Champions League, with Bodø/Glimt due to visit Dortmund on Tuesday. The fixture offers Kovač’s side an opportunity to build further momentum while the club’s decision to extend his contract sends a clear message of faith in the current project.