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
New York Mets Manager Terry Collins wears his Mets cap as General Manager Sandy Alderson looks on (L) as Collins was introduced as the Mets' new Manager at a news conference at Citi Field in New York, November 23, 2010. REUTERS/Mike Segar (UNITED STATES - Tags: SPORT BASEBALL)
New York Mets manager Terry Collins poses for photographers after being introduced as the Mets' new manager at a news conference at Citi Field in New York, November 23, 2010. REUTERS/Mike Segar (UNITED STATES - Tags: SPORT BASEBALL)
New York Mets manager Terry Collins signs autographs for fans during his team's MLB baseball spring training workout in Port St. Lucie, Florida February 22, 2012. REUTERS/Joe Skipper (UNITED STATES - Tags: SPORT BASEBALL)
New York Mets manager Terry Collins argues with umpire Fieldin Culbreth (L) after he was thrown out of the game with the New York Yankees, during the sixth inning of their MLB interleague baseball game at Citi Field in New York, May 28, 2013. REUTERS/Ray Stubblebine (UNITED STATES - Tags: SPORT BASEBALL)
May 22, 2014; New York, NY, USA; New York Mets manager Terry Collins (10) steps between right fielder Curtis Granderson (3) and home plate umpire Adrian Johnson (80) against the Los Angeles Dodgers during the sixth inning as Granderson argues being called out at Citi Field. Mandatory Credit: Adam Hunger-USA TODAY Sports
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)
Feb 14, 2017; Port St. Lucie, FL, USA; New York Mets manager Terry Collins (10) walks to the field during spring training workouts at Tradition Field. Mandatory Credit: Jasen Vinlove-USA TODAY Sports
Feb 24, 2017; Fort Myers, FL, USA; Boston Red Sox manager John Farrell (53) and New York Mets manager Terry Collins (10) talk prior to their spring training game at JetBlue Park. Mandatory Credit: Kim Klement-USA TODAY Sports
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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.