"Andy has done a terrific job for our hockey club over the past three seasons," Davidson said in a statement. "We're happy to have him in the fold for the next two seasons and continue to guide a competitive team."
Murray guided the Blues to a 41-31-10 record in 2008-09, including a League-best 25-9-7 record in the second half. The Blues roared from last place in the Western Conference to sixth, making the playoffs for the first time in five years.
The Blues' playoff surge was one of the finest in NHL history earning nearly 59 percent of their points since January 19, the highest such rate by any playoff team since 1940.
Murray was a runner-up for the 2009 Jack Adams Trophy, given annually to the NHL's Coach of the Year.
Murray became the sixth Blues coach to reach 100 wins after a 3-1 victory on April 10 vs. Columbus. He's fifth on the Blues all-time games coached list (218) and fifth in wins (101). He has an all-time coaching record of 316-261-121 (.539) and a 101-85-32 (.537) record with the Blues.