Iowa City, IA (Sports Network) - The University of Iowa has signed head men's basketball coach Fran McCaffery to a new seven-year contract.

The seven-year agreement guarantees McCaffery a minimum average of $1.66 million annually over the length of the contract, beginning with a base salary of $1.3 million in 2012-13.

McCaffery led the Hawkeyes to an 18-17 mark and an NIT bid in 2011-12. Iowa's NIT bid was its first postseason action since 2006.

The 53-year-old McCaffery has a 29-37 record during his two seasons at Iowa.

"Two years into his tenure, I'm thrilled with where Fran is taking our program," Iowa director of athletics Gary Barta said. "He has done an outstanding job, in all phases. We are pleased that the victory total has increased in the last two seasons. But, as important, Fran has demonstrated a total commitment in all phases of the program, including recruiting, community involvement and commitment to academic performance."

McCaffery spent five seasons at Siena before taking over at Iowa.

07/10 14:29:40 ET