Financial terms remain unchanged.
Athletic director Paul Krebs said he believes Davie has the UNM program headed in the right direction, having guided the Lobos to a 4-9 record and within a touchdown of several other victories last season in his first campaign.
New Mexico had won only thee games total in the previous three seasons.
In November 2011, Davie signed a six-year contract worth $760,000 per year with the potential of another $375,000 in incentives, none of which have yet been realized.
Davie’s contract buyout figure, should he leave for another job, gradually diminishes as follows: $650,000 in year two, $450,000 in year three, $350,000 in year four and $250,000 the remainder of the contract.
Should UNM terminate Davie for performance-based reasons, it would owe him his entire annual salary for the first three years of the contract. The amount then reduces to $350,000.