Collins, 66, led the Mets to the National League Pennant this past season, which was also the Mets' first winning season since he took over as manager in 2011.
After sweeping the Cubs in the NLCS, the Mets lost to the Royals in five games in the World Series.
The Mets held an option on Collins for 2016, but this is a new deal, with Collins getting a raise as part of it.
Collins said during the postseason that he would likely only manage one or two more years, so the assumption is that this will be it for Collins regardless of how the Mets perform over the duration of his new deal.
See photos of Terry Collins:
Terry Collins Mets Manager
Mets agree to two-year extension with Terry Collins
Terry Collins, the newly appointed manager of the California Angels, speaks at a news conference on Monday, Nov. 4, 1996 in Anaheim, California. Collins signed a multiyear contract, it was announced by club Vice President and General manager Bill Bavasi. Collins, 47, is the former Houston Astros manager. (AP Photo/Nick Ut)
Anaheim Angelsâ Shigetoshi Hasegawa, right, talks with the news media during a news conference at the Pond in Anaheim, California on Wednesday, Jan. 22, 1997 to announce the teamsâ new players. Angels Manager Terry Collins is also shown. (AP Photo/Michael Caulfield)
FILE--This is a 1999 file photo of Terry Collins of the Anaheim Angels. The Angels' response to the team's free fall in the AL West was to give Collins a contract extension Tuesday June 22, 1999. ``He was the right guy to turn this thing around a few years ago, and he's still the right guy,'' general manager Bill Bavasi said. (AP photo/file)
Team China pitcher Bu Tao (15) talks with manager Terry Collins (77) before leaving the mound in the fifth inning of their World Baseball Classic game against Team South Korea at Tokyo Dome in Tokyo, Japan, Sunday, March 8, 2009. (AP Photo/Shizuo Kambayashi)
Terry Collins answers reporter's questions during a news conference after being introduced as the new manager of the New York Mets at Citi Field in New York, Tuesday, Nov. 23, 2010. (AP Photo/Stephen Chernin)
New York Mets General Manager Sandy Alderson, left, shakes hands with newly named Mets manager Terry Collins, during a news conference at Citi Field in New York, Tuesday, Nov. 23, 2010. (AP Photo/Stephen Chernin)
Terry Collins poses at Citi Field in New York after being introduced as the new manager of the New York Mets, Tuesday, Nov. 23, 2010. (AP Photo/Stephen Chernin)
New York Mets manager Terry Collins laughs as he watches his players take part in drills during spring training baseball Friday, Feb. 18, 2011, in Port St. Lucie, Fla. (AP Photo/Jeff Roberson)
New York Mets new manager Terry Collins answers reporter's questions during a news conference Tuesday, Nov. 23, 2010, at Citi Field in New York. (AP Photo/Stephen Chernin)
New York Mets manager Terry Collins looks out from the dugout in the eighth inning during a spring training baseball game against the Florida Marlins, Sunday, March 20, 2011 in Jupiter, Fla. (AP Photo/Carlos Osorio)
New York Mets manager Terry Collins (10) during warmups before a spring training baseball game, Wednesday, March 23, 2011 in Jupiter, Fla. (AP Photo/Carlos Osorio)
New York Mets manager Terry Collins watches members of his team take batting practice during spring training baseball, Friday, Feb. 17, 2012, in Port St. Lucie, Fla. (AP Photo/Jeff Roberson)
New York Mets manager Terry Collins (10) gives a handshake to Mets' Scott Hairston (12) as they celebrate the Mets 11-2 win over the Philadelphia Phillies in a baseball game, Saturday, July 16, 2011, at Citi Field in New York. Hairston, subbing for ailing All-Star Carlos Beltran, drove in career-best five runs in the win. (AP Photo/Paul J. Bereswill)
New York Mets' David Wright, left, runs past manager Terry Collins after scoring a run in a spring training baseball game against the New York Yankees in Port St. Lucie, Fla., Tuesday, April 3, 2012. (AP Photo/Patrick Semansky)
New York Mets manager Terry Collins, left, talks with Houston Astros manager Bo Porter, right, before an exhibition spring training baseball game Sunday, Feb. 24, 2013, in Kissimmee, Fla. (AP Photo/David J. Phillip)
New York Mets Manager Terry Collins speaks at a press conference announcing that pitcher Matt Harvey has been diagnosed with a partially torn ligament prior to a baseball game between the Mets and Philadelphia Phillies at Citi Field in New York, Monday, Aug. 26, 2013. (AP Photo/Paul J. Bereswill)
New York Mets manager Terry Collins stands in the dugout before the Mets' baseball game against the Los Angeles Angels on Saturday, April 12, 2014, in Anaheim, Calif. (AP Photo/Jae C. Hong)
New York Mets manager Terry Collins, left, gives a fist pump to catcher Travis d'Arnaud prior to a baseball game against the Arizona Diamondbacks on Monday, April 14, 2014, in Phoenix. (AP Photo/Ross D. Franklin)
This is a 2015 photo of Terry Collins of the New York Mets baseball team. This image reflects the Mets active roster as of Saturday, Feb. 28, 2015, when this image was taken. (AP Photo/Jeff Roberson)
New York Mets manager Terry Collins stands in the dugout before a baseball game against the Pittsburgh Pirates in Pittsburgh, Friday, May 22, 2015. The Pirates won 4-1. (AP Photo/Gene J. Puskar)
NEW YORK, NY - OCTOBER 29: Manager Terry Collins #10 of the New York Mets speaks during a press conference the day before Game Three of the 2015 World Series between the Kansas City Royals and the New York Mets at Citi Field on October 29, 2015 in New York City. (Photo by Elsa/Getty Images)
CHICAGO, IL - OCTOBER 21: Daniel Murphy #28 and Manager Terry Collins #10 of the New York Mets hug after defeating the Chicago Cubs in game four of the 2015 MLB National League Championship Series at Wrigley Field on October 21, 2015 in Chicago, Illinois. The Mets defeated the Cubs with a score of 8 to 3 to sweep the Championship Series. (Photo by Elsa/Getty Images)
KANSAS CITY, MO - OCTOBER 26: Manager Terry Collins of the New York Mets addresses the media the day before Game 1 of the 2015 World Series between the Kansas City Royals and Mets at Kauffman Stadium on October 26, 2015 in Kansas City, Missouri. (Photo by Kyle Rivas/Getty Images)
CHICAGO, IL - OCTOBER 20: Terry Collins #10 of the New York Mets argues a ground rule double call with Home Plate Umpire Ted Barrett #65 in the sixth inning against the Chicago Cubs during game three of the 2015 MLB National League Championship Series at Wrigley Field on October 20, 2015 in Chicago, Illinois. (Photo by Elsa/Getty Images)
CHICAGO, IL - OCTOBER 20: Manager Terry Collins #10 and Curtis Granderson #3 of the New York Mets are seen during introductions before Game 3 of the NLCS against the Chicago Cubs at Wrigley Field on Tuesday, October 20, 2015 in Chicago , Illinois. (Photo by Ron Vesely/MLB Photos via Getty Images)
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Once the Mets won the NL East for the first time since 2006, Collins returning was a foregone conclusion, and it's a testament to him that he kept this team motivated during both good times and bad — especially earlier in 2015 when their offense was historically bad.
The issue with Collins, though — as it is with most managers in baseball — is that his in-game maneuvers often leave a lot to be desired.
After pressing all the right buttons in the NLDS and NLCS, Collins had a poor World Series against the Royals, allowing Michael Cuddyer to have three at-bats as the Mets lost Game 1, turning to Tyler Clippard in the eighth inning of Game 4, and sticking with Matt Harvey too long in the ninth inning of Game 5.
However, it's hard to find a manager who has the respect and admiration of his players, who handles the media adeptly, and who has actually made positive changes as his career has evolved. Collins checks off all three boxes.