Saudi Arabia have had a high turnover of coaches, and there was speculation Argentine-born Pizzi could be on his way out after the team suffered a 5-0 thumping at the hands of Russia in their opening game.
But the Asian side showed a marked improvement in their subsequent Group A matches, despite failing to progress from the group stage.
"The Saudi Arabian Football Federation extends the Saudi national team manager Juan Pizzi's contract until the end of the Asian Cup tournament," the FA said on Twitter.
Pizzi began coaching Saudi Arabia in November and his contract was due to expire at the end of the tournament in Russia.
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(Reporting by Osama Khairy; Writing by Alexandra Ulmer; Editing by Hugh Lawson)
