The contract extension for Lowe was the 53 year-old's reward for guiding the West Australian club through the storm of a salary cap scandal to two consecutive FFA Cup finals and an A-League finals berth.
Lowe was first appointed as the club's full-time head coach at the start of the 2014-2015 season and will become the longest serving coach in Glory history, surpassing Mich d’Avray who steered the team from 2001 to 2004 during the NSL era.
Lowe said his focus from here on, was to continue the improvement and growth of the team and the football department on and off the park.
“I am humbled, honoured and excited that Tony (Sage) and Peter (Filopoulos) have shown trust and faith in me to be here for two more seasons after the current campaign” he said.
“I am looking forward to the challenge of developing a long-term strategy of continued growth throughout the club from grassroots all the way up to the first team."
CEO Peter Filopoulos said Lowe’s extension was important in building a solid platform to achieve the targets set out in the club's four year plan.
“Kenny’s record at Perth Glory speaks for itself with an impressive record during his tenure after taking over the reins in 2013-2014 as interim coach and then officially from 2014-2015" Filopoulos said.
“With a clear strategy in place for the club, it was critical we extended Kenny’s contract to provide the environment and opportunity to drive our strategic objectives between now and 2020.”
Meanwhile, 43 year-old Schwarzer won't be joining Lowe at Glory, with the former Socceroos No.1 weighing up an option to play with Sydney FC.
Schwarzer didn't play a single minute in the English Premier League last season for title winners Leicester City, and Glory and Sydney were in a race to sign him for the coming A-League campaign.
But the Glory confirmed on Tuesday that Schwarzer had declined their offer.
"As soon as Leicester cut him, I rang Kenny straight away and said, 'Just contact him. You must know Mark'," Glory owner Tony Sage said.
"I would be fantastic to have someone of that calibre here.
"But he's got his own plans now. I think he wants to retire. He might have one more stint.
"The only club he would go back to - if it was Australia - would be Sydney, since he came from there."