The 53-year-old will reportedly receive a salary increase for the remaining two seasons of his contract - this year and 2019-20.
Boylen will make $1.6 million this season, according to ESPN. Approximately $1 million of his $1.6-million salary for next season is guaranteed, sources told ESPN's Adrian Wojnarowski, providing the organization with more flexibility in the offseason should the Bulls decide to move on from Boylen or restructure his deal.
"The Bulls have been very gracious to me and very supportive in everything we're trying to do," Boylen said prior to Saturday's game against the Utah Jazz, according to Eric Walden of The Salt Lake Tribune. "They're fair and honest and direct, and I respond to that well."
Boylen has led the Bulls to a 5-13 record since Fred Hoiberg was fired last December.
Before becoming Chicago's bench boss, Boylen spent many years coaching at the collegiate and NBA level.
He won back-to-back rings with the Houston Rockets in 1994 and 1995 as an assistant coach under Rudy Tomjanovich.
Boylen served as Tom Izzo's top assistant at Michigan State from 2005-07 before spending the next four seasons as the head coach at Utah, leading the Utes to a 69-60 record and an NCAA tournament appearance.
Boylen added a third NBA championship to his resume in 2014 with the San Antonio Spurs as a member of Gregg Popovich's staff.
However, the Michigan native's tactics have been questioned by his players during his short tenure as the Bulls' head coach. Boylen scheduled a practice a day after a back-to-back before ultimately holding a team meeting instead.