Wilder, 52, was appointed in 2016 by his boyhood club and led them from League One to the Premier League, with two promotions in his first three seasons in charge.
After securing the club's return to the top flight for the first time since 2007, Wilder was handed a new three-year deal in July and was named LMA Manager of the Year.
The club is currently eighth in the Premier League having won seven of their 21 games and can climb to fifth with a win over West Ham on Friday.
Club's announcement
Happy New Year Blades fans... Chris Wilder has signed a new long-term contract with the club.
Following negotiations with the board, the Sheffield-born manager has signed a four-and-a-half year deal until the summer of 2024, with a club option for an additional year.
Blades owner Prince Abdullah commented: "Chris has played an integral role in our recent and current success and we want him at the helm in the future, driving us forward, hence the new long-term contract."
"He is a dynamic leader, with whom the supporters connect and it is important that we have someone of his stature leading this club on the field. January is a very important month but securing the signature of Chris was paramount and underpins all the plans we have for the club over the next few years."
Speaking ahead of the Premier League encounter with West Ham United on Friday evening, Wilder said: "Naturally, I'm delighted to sign a new deal until 2024 and commit to the club that is close to my heart. I am grateful to Prince Abdullah for taking the initiative and offering this contract, we've had a great few years and hopefully we can continue the upward curve - let's see how far we can go on this journey."
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