Tannehill peaked in 2014, throwing for a career-high 4,045 yards and 27 touchdowns with just 12 interceptions.
"He is an ascending talent, a team leader and he checks all of the boxes you are looking for at the position," said Miami executive vice president of football operations Mike Tannenbaum.
Added general manager Dennis Hickey: "He's a proven quarterback in this league that combines skillset with work ethic, passion, toughness, and a team-first mentality."
The Dolphins had already exercised their fifth-year option on Tannehill's rookie deal, but their latest move adds at least four more years to his time in Miami.
The option will keep Tannehill under contract through the 2016 season. He'll be paid $15 million for the final year of the contract.
Tannehill will earn $15 million in 2016 based on the contract clause for Miami to pick up his option. Tannehill threw for a career-high 4,045 yards with 27 touchdowns and 12 interceptions in 2014.
The Dolphins could decide to pick up Tannehill's fifth-year option and wait on an extension. The deadline for doing so is May 3. Doing that would cost the Dolphins $15 million for the 2016 season.
Previously, NFL.com reported that the Dolphins were hopeful that they could strike a long-term deal with Tannehill before Week 1 of the 2015 season.
In 2014, Tannehill threw for 4,045 yards with 27 touchdowns and 12 interceptions.
The team is expected to pick up the option if they cannot reach a long-term extension with him. Tannehill had his best season in 2014, throwing for 4,045 yards with 27 touchdowns and 12 interceptions.
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