The deal adds one more year to his current contract, keeping him under team control through 2023-24.
Detroit has struggled to a 20-50 record this year in Casey's third season with the team, currently the worst record in the Eastern Conference.
Casey replaced Stan Van Gundy in 2018 after his predecessor had just one playoff appearance in four seasons. It appeared things were turning around in his first season as a 41-41 record was enough to reach the playoffs.
That team was swept out of the first round of the playoffs, however, continuing a trend of zero postseason wins for the franchise since reaching the Eastern Conference Finals in 2008. The organization has reached the playoffs three times in this stretch but suffered a sweep each year.
Only once since 2008 have the Pistons finished the regular season with a winning record (2015-16).
It appears the organization still understands it's a rebuild and is willing to stick with Casey. The franchise hasn't had a coach last more than four years since Chuck Daly from 1983 to 1992.
There is still talent on the roster between Jerami Grant, Killian Hayes, Saddiq Bey and Isaiah Stewart, but the pressure is on to turn things around after an extended stretch of disappointment.
Casey fell short of expectations in seven years with the Toronto Raptors, getting fired in 2018, the same year he won the league's Coach of the Year Award. He led the squad to a 320-238 record in the regular season but went just 21-30 in the playoffs.
The hope is his run with the Pistons will lead to more success if given the opportunity.