The former Socceroo, in his third season at the Bulls, would have been out of contract at the end of this campaign.
The new deal comes as they look to keep their finals hopes alive entering Friday night's home game against Newcastle.
"Very grateful to be still part of the club and proud to be leading the team. It's been a great journey so far, with ups and downs," Sterjovski said on Thursday."My ambition is quite simple, I want us to be a successful team first and foremost.
"I think we are going to be a great club, one of the best in the A-League."
Part of Macarthur's coaching set-up since their inaugural season in 2020, Sterjovski took over as head coach following the departure of Dwight Yorke part-way through the 2022/23 season.
In his first full campaign, Sterjovski led the Bulls to the elimination finals before guiding them to their second piece of silverware with a victory in the 2024 Australia Cup against Melbourne Victory.
They were second on the table at the start of the calendar year before a number of mid-season transfers resulted in a slump to eighth.
Former captain Valere Germain, Jed Drew, Ariath Piol and Oliver Jones were among the players to leave the club during the January transfer window.
Sterjovski has also lost young stars Dean Bosnjak, Frans Deli, Oliver Randazzo and Alexander Robinson to U20 Asian Cup duty.
Returning to A-League action after the international window, Macarthur will take on the Jets after snapping a three-game losing streak with a remarkable 5-4 win over Adelaide.
"I think it was super important to get those goals. For the confidence of the team, to be able to score again was amazing," Sterjovski said.
"As a coach it was a bit of a rollercoaster (against Adelaide), hoping to not concede so many and keep scoring those goals.
"You're always learning as a coach how to deal with things.
"It hasn't been easy having players leave, players going away on national team duty, but I think we're handling it pretty well."
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