The deal includes a club option for a further year, potentially extending his stay through to the end of the 2028/29 season.
It rewards a first campaign in English football that saw the 49-year-old take Hull from the brink of relegation to the Premier League, a turnaround few could have predicted when he arrived at the MKM Stadium.
Jakirović was appointed in June 2025 after a playing career as a centre-back in his native Bosnia and Herzegovina and a managerial path that had taken in several clubs in Croatia and Slovenia, most recently Dinamo Zagreb, before a brief spell at Kayserispor in Turkey.
He steered Hull City to a play-off place on the final day of the Championship season with a 2-1 win over Norwich City, before eliminating Millwall in the semi-finals and beating Middlesbrough at Wembley, keeping three consecutive clean sheets during the promotion run.
That victory made him only the third Hull manager to win promotion to the top flight via the play-offs, ending a 10-year absence from the Premier League. The club have started life back among the elite in style, beating Manchester United 2-0 in their opening fixture — their first league win over the Red Devils in 52 years — before following up with another three points on the second weekend of the season.
"I have felt the support from the club and our fans from the minute I arrived, so I am delighted that this journey will continue," Jakirović said.
"Hull feels like my home and I'm excited for this journey to continue. Promotion to the Premier League is a dream come true.
"You have to believe in your work and we have a special group here who are sticking together as a family."
Club chairman Acun Ilıcalı, who is understood to have holidayed with his head coach over the summer, praised the relationship between the pair.
"From the first day we met, it was clear that we had a special relationship," Ilıcalı said. "Everyone at the club believes that Sergej is a high-quality coach and it is a big privilege to have him here. We created some amazing moments at Wembley, and I thank him for that."
Jakirović's contract had been due to expire at the end of the current season, but the extension removes any uncertainty over his future just as Hull look to establish themselves in the top flight.
Averaging 1.58 points per game during his debut Championship campaign, the Bosnian has already shown an ability to exceed expectations since arriving on Humberside, and the club will hope the fresh terms provide stability to build on a promising start back among England's elite.